Mentioned:
Rocket Lab has a new ambition: the satellite communications business.
What’s happening:
- Rocket Lab (NASDAQ: RKLB) has entered into a new deal to acquire global satellite communications company Iridium for roughly $8B USD
By the numbers:
- Rocket Lab will pay roughly $4B USD in cash and issue $4B in stock to acquire Iridium
- Wells Fargo and Deutsche Bank have provided Rocket Lab with a $3.6B USD senior secured bridge term loan facility to help fund the purchase of Iridium
Why it matters:
- Iridium is one of the largest global satellite communications networks globally and provides mobile voice and data satellite connectivity throughout the entire world
Going deeper:
- This is the first time ever that Rocket Lab has purchased a global satellite communications network company
- Iridium currently has roughly 2.54M subscribers and has 66 satellites that are providing continuous low-Earth-orbit coverage for mobile voice and data services globally
