What Happened?
Shares of aerospace and defense company Rocket Lab (NASDAQ: RKLB) jumped 11.7% in the afternoon session after the company announced it would acquire satellite communications company Iridium Communications in a deal valued at approximately $8 billion.
Rocket Lab would buy all outstanding shares of Iridium for $54 per share in a cash and stock transaction. The deal was described as one of the most transformative in the space industry, creating a company that can build satellites, launch them, and operate the network.
By uniting Rocket Lab's launch and satellite manufacturing with Iridium's global network and experience, the acquisition is expected to add significant revenue, cash flow, and profitability. The transaction is expected to be completed in mid-2027, subject to customary closing conditions, including approvals from Iridium's stockholders and regulators.
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What Is The Market Telling Us
Rocket Lab’s shares are extremely volatile and have had 82 moves greater than 5% over the last year. But moves this big are rare even for Rocket Lab and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 3 days ago when the stock gained 6.2% on the news that NASA selected the company for three dedicated Electron rocket launches for two science missions.
The announcement, made after the previous day's market close, lifted shares in after-hours trading and fueled buying momentum into the regular session. The contract covers the PolSIR (Polarized Submillimeter Ice-cloud Radiometer) and TSIS-2 (Total and Spectral Solar Irradiance Sensor-2) missions, with launches scheduled to begin in early 2027. This win, part of NASA's Venture-Class Acquisition of Dedicated and Rideshare (VADR) contract, provides a concrete revenue catalyst. It also reinforces Rocket Lab's standing as a preferred small-launch provider for U.S. science agencies, tasked with delivering research satellites into precise orbits.
Rocket Lab is up 27.5% since the beginning of the year, but at $96.86 per share, it is still trading 35.5% below its 52-week high of $150.23 from May 2026. Investors who bought $1,000 worth of Rocket Lab’s shares 5 years ago would now be looking at an investment worth $8,887.
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