Rocket Lab (RKLB) investor relations material

Deal rationale and strategic fit

• Combines launch, satellite manufacturing, and global satellite communications with rare spectrum, creating a vertically integrated, self-launching space company positioned for growth.

• Enables accelerated entry into global communications, defense-grade satellite voice, IoT, direct-to-device, PNT, and critical safety-of-life services, expanding into untapped markets.

• Provides access to a large, profitable customer base, recurring application revenue, and mission-critical technology for demanding customers.

• Positions the combined entity as a trusted government partner with millions of customers worldwide and enhances capabilities for defense and national security customers.

• Unlocks new opportunities in aviation safety, IoT, government services, and next-generation satellite constellations.

Financial terms and conditions

• Acquisition price is $54 per share, split between $27 in cash and Rocket Lab stock, with an enterprise value of ~$8 billion; exchange ratio set within a collar between $67.50 and $112.50.

• Rocket Lab secured $3.6 billion in bridge facility/committed debt financing and will use $1.6 billion from its balance sheet.

• Bridge facility will refinance $2.1 billion of Iridium debt; remaining funds cover cash consideration and fees.

• Cash component funded through balance sheet and additional debt/equity financing.

• Boards of both companies unanimously approved the deal, expected to close in mid-2027 pending regulatory and shareholder approvals.

Synergies and expected cost savings

• Integration expected to deliver significant cost efficiencies by combining launch, manufacturing, and satellite services, eliminating third-party launch costs.

• Accelerates ability to launch, operate, and sustain new services, including next-gen PNT and expanded Aireon business.

• Highly vertically integrated operations expected to optimize and scale combined capabilities and unify technology platforms.

• Diversifies financial profile with recurring cash flow streams from satellite services.

• Anticipated to be significantly accretive to cash flow and profitability.