Iridium Communications Inc: More consolidation in satellites

Research evidence excerpt

Iridium Communications Inc: More consolidation in satellites

Equity Research

European Telecom Services

29 June 2026

Iridium Communications Inc

More consolidation in satellites

Iridium has agreed to be acquired by Rocket Lab for $54 p/s.

Our DCF valuation points to $30 p/s and our PT (w/ spectrum

optionalities) is $36. Higher spectrum value and/or synergies IRDM OVERWEIGHT

European Telecom Services NEUTRAL

could potentially justify this price. We see a positive read- Price Target USD 36.00

across for other satellite names (VSAT, ASTS). Price (26-Jun-26) USD 43.52

Potential Upside/Downside -17.3%

Source: Bloomberg, Barclays Research

Rocket Lab offers $54 p/s

Iridium has entered into a definitive agreement with Rocket Lab for the purchase of IRDM at

$54.0 p/s. The company estimates that this implies an enterprise value for Iridium of

Mathieu Robilliard

approximately $8.0 bn. The transaction is expected to be completed in mid-2027 following the +44 (0)20 3134 3288

customary approvals. mathieu.robilliard@barclays.com

BBI, Paris

Iridium shareholders will receive $27 in cash and a number of shares of Rocket Lab common

stock calculated based on the 10-day VWAP of Rocket Lab’s ending on the second trading day Maxime Delaugerre

+44 (0)20 3555 5672prior to the closing of the transaction.

maxime.delaugerre@barclays.com

-If this stock price is greater than $67.50 but less than $112.50, then the exchange ratio will be Barclays, UK

the quotient obtained by dividing $27.00 by the stock price of Rocket Lab. At the closing price of Ganesha Nagesha

Rocket Lab, the quotient is 0.3161 and points to $54 p/s for the offer price. +91 (0)22 6175 1712

ganesha.nagesha@barclays.com

- If this stock price is equal to or less than $67.50, then the exchange ratio will be 0.4. Barclays, UK