Iridium (IRDM) Gets 25% Boost from $8-Billion Rocket Lab Merger

Iridium Communications Inc. (NASDAQ:IRDM) is one of the 10 Stocks Investors Are Chasing Right Now.

Iridium Communications soared to a nearly three-year high on Monday, as investors gobbled up shares following news that it is set to merge with Rocket Lab Corp. for $8 billion.

In intra-day trading, the stock climbed to a record high of $55.17 before paring gains to end the session just up by 25.44 percent at $54.59 apiece.

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For illustration purposes only. Photo by Ketut Subiyanto on Pexels

The two parties announced the signing of a definitive agreement on the same day, under which Rocket Lab will acquire all issued and outstanding shares of Iridium Communications Inc. (NASDAQ:IRDM) in a combination of cash and stock.

Under the terms of the agreement, Iridium Communications Inc. (NASDAQ:IRDM) shareholders are set to receive $27 in cash and shares of Rocket Lab, calculated pursuant to an exchange ratio for each share of Iridium common stock outstanding at the closing, which, if combined, would equate to $54 apiece.

Complete details on the exchange ratio calculation will be in the transaction agreement, which will be filed with the Securities and Exchange Commission.

The transaction is expected to be completed in the middle of 2027, subject to regulatory approvals, including approval of Iridium Communications Inc. (NASDAQ:IRDM) stockholders, among others.

The transaction has been unanimously approved by the boards of directors of both companies.

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