Rocket Lab secures U.S. antitrust clearance for Iridium acquisition

Rocket Lab USA Inc. said on Friday it had received antitrust clearance from the U.S. Federal Trade Commission for its planned acquisition of Iridium Communications Inc.'s launch services business.

The FTC's approval marks a critical regulatory milestone for the $515 million deal, which Rocket Lab first announced in December 2023. The transaction is structured as a cash-and-stock acquisition, with Iridium shareholders set to receive $7.85 per share in cash and Rocket Lab stock, valuing the launch services unit at approximately $515 million.

The acquisition aims to expand Rocket Lab's end-to-end space capabilities by integrating Iridium's launch services, satellite operations, and ground infrastructure. Rocket Lab has emphasized the strategic fit, noting that the deal will enhance its ability to provide responsive and dedicated launch solutions for government and commercial customers.

The companies have not yet disclosed a definitive timeline for the deal's completion, pending additional regulatory approvals and customary closing conditions. Rocket Lab stated that it remains on track to finalize the transaction in the second half of 2024, subject to shareholder and other required approvals.

Rocket Lab's shares were indicated slightly higher in premarket trading following the announcement, reflecting investor optimism over the regulatory progress. The company has not provided updated guidance regarding the financial impact of the acquisition.

The deal underscores the consolidation trend in the space industry, where companies seek to bolster their launch and satellite service offerings amid growing demand for space-based connectivity and data services.