Nearly 100% of votes cast backed the acquisition, bringing Rocket Lab closer to completing its planned purchase of Iridium.

  • Iridium holders will receive $27 in cash plus Rocket Lab shares under the deal terms.
  • RKLB shares were up 0.7% after hours, while IRDM stock slipped 0.29%.
  • Stocktwits sentiment for IRDM remained ‘bullish,’ with ‘high’ message volume for both stocks.

Iridium Communications Inc. (IRDM) shareholders have approved Rocket Lab’s (RKLB) planned acquisition of the company, marking an important step toward completing the transaction. About 99.6% of votes cast backed the deal, representing around 81% of Iridium’s outstanding shares entitled to vote.

At the time of writing on Thursday, IRDM stock was down 0.29% in after-hours trading, while RKLB shares were up 0.7%.

Shareholders Back Rocket Lab Deal

Iridium and Rocket Lab announced on Thursday that IRDM shareholders had adopted the previously announced agreement and plan of merger under which RKLB will acquire Iridium.

The vote took place at a special meeting of Iridium shareholders. Complete voting results will be reported in a current report on Form 8-K that Iridium will file with the U.S. Securities and Exchange Commission.

“We appreciate the strong support of our stockholders for this transaction and the bright future we are building with Rocket Lab,” said Matt Desch, CEO of Iridium.

Iridium Holders To Receive Cash And Stock

Under the terms of the transaction, Iridium shareholders will receive $27 in cash and a number of Rocket Lab shares based on an exchange ratio, subject to a collar, for each Iridium share outstanding at closing.

The transaction has a notional value of $54 per Iridium share. The transaction is expected to be completed by mid-2027, subject to the remaining required regulatory approvals and the satisfaction of other customary closing conditions.

RKLB Sees Space Industry Opportunity

“Today’s vote is an important milestone in bringing together Rocket Lab and Iridium to create a next-generation space powerhouse,” said Sir Peter Beck, Rocket Lab Founder and CEO.

Beck said the company was grateful for the support of Iridium shareholders and that the transaction would bring Rocket Lab closer to combining Iridium’s global network, spectrum, and operating experience with Rocket Lab’s launch and space systems capabilities.

He said the combination could unlock new space applications for customers, governments, and millions of people worldwide once the transaction closes.

IRDM, RKLB Stocks: What Retail Traders Feel

On Stocktwits, retail sentiment for RKLB improved to ‘extremely bullish’ from ‘bullish’ a day earlier, while message volume remained ‘high.’

For IRDM, retail sentiment stayed ‘bullish,’ unchanged in the past 24 hours, with message volume being ‘high’.

RKLB stock has gained nearly 6% year-to-date, while IRDM shares have surged 187% over the same period.

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