HOUSTON, TX — Iridium ($IRDM) shareholders voted overwhelmingly yesterday to approve the company’s proposed acquisition by Rocket Lab ($RKLB). According to Rocket Lab CFO Adam Spice, there’s more M&A on the horizon.
In the shareholders meeting, 99.6% of votes were cast in favor of the buyout, putting Rocket Lab one step closer to owning the satcom giant. The deal is expected to close in mid-2027 for ~$54 per Iridium share—in a mix of cash and RKLB stock.
Gotta have it: The Iridium purchase is the latest in a string of increasingly large buyouts that started before the company went public via SPAC in 2021. The acquisitions have given Rocket Lab a breadth of new capabilities, including flight software, satellite separation systems, space solar power products, electro-optical and infrared sensors, laser communications terminals, and in-space robotics systems. And the company isn’t done buying just yet.
Speaking virtually at Payload’s Off World event in Houston yesterday, Rocket Lab CFO Adam Spice confirmed that the company is considering more M&A opportunities to continue expanding its capabilities, and win larger, more impactful contracts.
“Going forward, when you look at our government customers, they’re looking for more than just one thing,” Spice said. “Whether that’s Earth observation capabilities, whether it’s different kinds of sensors for scientific or national security purposes. We’re going to be going out continuing to pick those capabilities up…We’re not stopping at L-band communications with Iridium. We’re rather building on that to be able to offer more and more to the market.”
The decision to build or buy, however, will be met on a case-by-case basis, according to Spice, who added that the company’s tech is a healthy mix between the two. Spice estimated that 40-50% of its space systems portfolio stems from acquired technologies, with the rest originating from internal R&D.
One more thing…the elephant: Spice also explained the company’s move to protest NASA’s decision to select Blue Origin for the Mars Telecommunications Network, by pointing to other successful protests by major space companies in recent years.
“It’s just a sign you’ve kind of gotten to the big leagues,” Spice said. “We’ve seen other people protest and come out successfully on the other end…SpaceX obviously did that in a very visible way…Then of course Blue Origin did the same thing to be able to ramp to NSSL. So when you believe that you’re bringing the best value proposition…you want to make sure your voice is heard.”
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