Rocket Lab Corp. (NASDAQ:RKLB) is one of the 10 Stocks Investors Are Chasing Right Now.
Rocket Lab saw its share prices jump by 15.93 percent on Monday to close at $98.01 apiece, as investors gobbled up shares following news that it is expanding into satellite communications for $8 billion.
This followed announcements during the day that it officially signed a definitive agreement with Iridium Communications Inc. to acquire all its issued and outstanding shares in a combination of stock and cash.
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The shares will be acquired at a price of $54 apiece, or a 24 percent premium over Iridium’s $43.52 closing price on Friday, prior to the announcement.
Rocket Lab Corp. (NASDAQ:RKLB) said that the acquisition was in line with plans to create a competitive, vertically integrated space company that designs, builds, launches, and operates its own constellations.
Upon closing, Rocket Lab Corp. (NASDAQ:RKLB) will effectively gain a foothold in the space-based applications market.
“By marrying Iridium’s deep heritage, trusted infrastructure, and highly sought-after spectrum with Rocket Lab’s extensive and proven launch and manufacturing capabilities, we have the capability to unlock entirely new markets. We will go far beyond maintaining a legacy; we are going to build upon it to pioneer next-generation space applications and deliver sought-after capabilities to existing and new customers,” Rocket Lab Corp. (NASDAQ:RKLB) CEO Peter Beck said.
The transaction is targeted for completion in the middle of 2027, subject to closing conditions, including approval of the shareholders.
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