On a whim, Rocket Lab acquires Iridium Communications

“Success will come from those who can bring new innovations to the scene as quickly as possible and maintain them over time as efficiently as possible,” Desch said in a statement. “We are excited to be able to advance the next generation of IoT, aviation, maritime, PNT, and national security, and pursue new opportunities as part of Rocket Lab.”

Competing with SpaceX

It’s a bold move for Rocket Lab, which has been on a buying spree as it seeks to expand its operations to compete with SpaceX and Blue Origin, both of which have launch capabilities and want to operate larger constellations. In the past two years, Rocket Lab has acquired both Geost and Mynaric to advance its aerospace manufacturing capabilities. But both purchases, valued in the hundreds of millions of dollars, were dwarfed by the Iridium deal.

Iridium is a company with a long history. First launched in 1998, it had to be saved from bankruptcy a few years later by the US government due to difficulties in building and deploying a commercial satellite communications system. After arriving as CEO in 2006, Desch developed the next-generation constellation plan and worked with SpaceX and its Falcon 9 rocket to launch in the 2010s. For a while, Iridium was SpaceX’s most important customer. Satellites produce large amounts of Iridium today.

In order to become, in Beck’s words, “a self-generating force,” Rocket Lab must complete the development of its Neutron launch vehicle. The company’s current rockhorse rocket, the Electron, is too small to deliver the wide range of communication satellites that Rocket Lab envisions being developed.

The company initially targets 2024 as the launch date for the Neutron rocket, which will have a flexible first stage and a new design. There have been teething pains with Neutron, however, plus engine failure and structural test anomalies. Nominally, the company plans to launch in the fourth quarter of this year. But given the testing difficulties, it is not certain that Neutron will make its debut in 2027.