The US space company Rocket Lab Corp. has agreed to acquire the satellite communications operator Iridium Communications Inc. for approximately $8 billion, including debt, according to a joint press release.
Rocket Lab has valued the shares of the company it is acquiring at $54 each; it will pay $27 in cash for each share, as well as a certain number of its own shares, to be calculated on the basis of an exchange ratio that has not yet been disclosed.
The transaction is expected to be completed in the middle of next year, creating a ‘competitive, vertically integrated space company that designs, manufactures, launches and operates its own satellite constellations, providing critical communications capabilities to millions of users worldwide”, according to a press release.
Iridium shares rose by 22.1% during Monday’s trading session and are currently trading at $53.16 each. Rocket Lab shares are up 9.2% to $92.2.