Rocket Lab jumps on $8 billion Iridium Communications deal
Mon 14:57
BUZZ-Rocket Lab jumps on $8 billion Iridium Communications deal Updates
** Shares of space services firm Rocket Lab RKLB.O up 12.20% at $94.24
** RKLB to buy satellite communications provider Iridium Communications IRDM.O for $54 per share, implying a 24.1% premium to stock's last close
** Cash-and-stock deal valued at about $8 billion
** Shares of IRDM up 21.37% at $52.57, highest since July 2023
** Deal adds material revenue scale and is significantly accretive to co's cash flow generation and profitability - RKLB
** RKLB secures $3.6 billion bridge financing from Deutsche Bank, Wells Fargo as part of the deal, which is expected to close mid-2027
** Including session's moves, RKLB up 32.68%, IRDM up 203.09% YTD
(Reporting by Zakia Mariyam in Bengaluru)