Rocket Lab Corporation has entered into a definitive merger agreement to acquire Iridium Communications Inc. The acquisition will be executed through a combination of cash and stock, making Iridium a wholly owned subsidiary of Rocket Lab upon completion.
Key Details
- Merger Consideration: Iridium shareholders will receive $27.00 in cash and a variable number of Rocket Lab shares for each Iridium share. The stock portion is based on an exchange ratio determined by Rocket Lab's stock price, with a collar mechanism set between $67.50 and $112.50 per share.
- Financing: Rocket Lab has secured a commitment for a $3.6 billion, 364-day senior secured bridge term loan facility to finance the transaction.
- Termination Fee: The agreement includes a termination fee of $223.62 million payable by Iridium to Rocket Lab under specified circumstances, such as accepting a superior proposal.
- Conditions & Timeline: The transaction is subject to Iridium stockholder approval and regulatory clearances, including HSR Act and FCC approvals. The deal has a termination date of June 28, 2027, with provisions for extension.