plan to merge
GHL Acquisition Corp. and Iridium
Holdings, a leading provider of mobile voice and data satellite
services, signed a definitive agreement under which they plan to combine.
The proceeds of the transaction will enable Iridium to be debt-free and well-positioned to develop its next generation satellite
constellation, “Iridium NEXT.”
The Iridium Next project
, estimated to cost more than $2 billion, would gradually replace the company's 66 meshed satellites with new ones and allow it to offer an Internet
. Last year, Iridium Holdings Chairman and CEO Matt Desch said the network's baseline speed was 2.4K bps, and it hoped to provide options for as much as 10M bps with Iridium Next.
The transaction values Iridium at around $591 million. Following completion of the deal, the combined enterprise will be renamed Iridium Communications
Inc. and will apply for listing on the NASDAQ.