TLDR
- Iridium stockholders approved Rocket Lab’s acquisition on September 24, 2026, with 99.6% of votes cast in favor.
- Approximately 81% of Iridium’s outstanding shares were represented at the special meeting.
- The deal values Iridium at a notional $54.00 per share, combining cash and Rocket Lab stock.
- Rocket Lab stock jumped 5% to $73.61 the same day, helped by a Space Force contract win and ARK Invest buying shares.
- The transaction is expected to close by mid-2027, pending regulatory approval.
Rocket Lab (RKLB) stock climbed 5% on Thursday, closing near $73.61 after trading as high as $75.46. The move came on a big day for the company’s pending acquisition of satellite operator Iridium Communications (IRDM).
Iridium stockholders gave their blessing to the merger at a special meeting on September 24. About 99.6% of votes cast supported the deal, representing roughly 81% of Iridium’s outstanding shares.
Stockholders also approved an advisory proposal on golden parachute compensation for named executives. Both votes clear a key hurdle toward closing the transaction.
Under the terms, Iridium shareholders will get $27.00 in cash plus a number of Rocket Lab shares, calculated using an exchange ratio subject to a collar. The deal carries a notional value of $54.00 per Iridium share.
Rocket Lab CEO Peter Beck called the vote “an important milestone” in building what he described as a next-generation space powerhouse. Iridium CEO Matt Desch echoed that sentiment, pointing to the two companies’ complementary capabilities.
The merger is expected to close by mid-2027. It still needs regulatory sign-off and other customary closing conditions.
What Else Moved Rocket Lab Stock This Week
Beyond the Iridium news, Rocket Lab landed a spot on the Space Force’s NITE-STAR contract vehicle. That deal has a potential value of up to $981 million through 2036, though Rocket Lab isn’t guaranteed a set share of that spending.
ARK Invest also bought around $25 million worth of Rocket Lab shares across its funds this week. Cathie Wood has been a repeat buyer of the stock this year.
There’s also a possible tailwind from a competitor. SpaceX is expected to cut back on third-party rideshare capacity, which could open up demand for independent launch providers like Rocket Lab.
Trading volume was heavy on Thursday. Nearly 25 million shares changed hands, up 8% from the average session volume of about 23.2 million shares.
Analyst Views Remain Mixed
Wall Street’s take on Rocket Lab is split. The stock carries a “Moderate Buy” consensus rating with an average price target of $107.32, according to MarketBeat.
Piper Sandler set a “neutral” rating with an $83.00 target in July. Stifel Nicolaus set a higher $132.00 target in June, while Wall Street Zen downgraded the stock to “sell” in August.
Some investors have flagged risks tied to the Iridium deal itself. Concerns include financing needs, integration risk, and whether the acquisition stretches an already high valuation.
Rocket Lab remains unprofitable. The company posted a loss of $0.08 per share last quarter, missing estimates, though revenue of $234.07 million beat expectations.
Insider selling has also picked up. CEO Peter Beck sold over 1.29 million shares in July for about $110 million, cutting his stake by roughly 32%.
Institutional investors continue building positions too. Andra AP fonden increased its Rocket Lab holdings by more than 2,500% in the second quarter.
Iridium’s stock ticked up 1% following the vote announcement. The most recent analyst rating on IRDM is a “Hold” with a $54.00 price target, matching the deal’s notional value.
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