IRDM · Iridium Communications Inc.

Iridium Communications Inc. announced a definitive agreement to acquire the remaining 61% equity interest in Aireon Holdings LLC, the operator of the world's only space-based Automatic Dependent Surveillance-Broadcast (ADS-B) air traffic surveillance system. The transaction, valued at approximately $366.7 million, will be paid in two installments: 50% in cash at closing and 50% via a deferred interest-free loan from the sellers, maturing one year after closing. Iridium will also assume Aireon's outstanding debt of approximately $155 million under an existing facility maturing in October 2028 with an interest rate of SOFR + 6.25%. The acquisition unifies Aireon's surveillance and data services with Iridium's global satellite network, positioning the combined entity to offer four critical aviation capabilities: surveillance, communications, navigation/timing integrity, and operational data analytics. The sellers—NAV CANADA, AirNav Ireland, ENAV, Naviair, and NATS—are key air navigation service providers (ANSPs) that co-founded Aireon. In connection with the deal, NAV CANADA and NATS will sign extended data services agreements through 2035 and beyond, with provisions for continued development of space-based VHF communications. Iridium expects the acquisition to be accretive to growth, with Aireon's revenue having grown at a 10% CAGR over the past three years. The company anticipates an additional consolidated $100 million of service revenue and $30 million of OEBITDA on an annualized basis. Post-closing, net leverage is expected to increase to approximately 4.0x OEBITDA in Q3 2026, with a planned return to current levels within twelve months. The transaction is targeted to close in early July 2026, subject to customary conditions including regulatory approvals under the Hart-Scott-Rodino Act. The strategic rationale is to create a comprehensive aviation safety platform, leveraging Aireon's established data services and the potential for space-based VHF communications, which could extend pilot-to-controller services to oceanic and remote airspace without requiring additional aircraft equipment.