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Amazon said Tuesday it would acquire Globalstar for $90 a share, in a deal worth about $11.57 billion.

The transaction will give Amazon’s nascent Leo satellite internet business a boost as it vies to compete with Elon Musk‘s SpaceX.

Shares of Globalstar surged more than 10%. Amazon’s stock gained over 3%.

Under the agreement, Amazon said it will acquire Globalstar’s existing satellite operations, infrastructure and assets, including some spectrum licenses with global authorizations. Globalstar’s new satellites and its existing fleet will operate alongside Amazon’s network.

Amazon said the acquisition will enable it to build its own direct-to-device satellite system, which it expects to start deploying in 2028.

“By combining Globalstar’s proven expertise and strong foundation with Amazon’s customer-obsession and innovation, customers can expect faster, more reliable service in more places — keeping them connected to the people and things that matter most,” Panos Panay, Amazon’s senior vice president of devices and services, said in a statement.

Globalstar stockholders will choose to receive either $90 in cash or 0.3210 share of Amazon common stock for each share of Globalstar stock that they own, the companies said.

The transaction is expected to close in 2027.

Alongside the move, Amazon said it also agreed to a deal with Apple to provide satellite connectivity for current and future iPhone and Apple Watch features.

Apple took a 20% stake in Globalstar in 2024 as part of a $1.5 billion investment to boost the company’s constellation and ground infrastructure. Globalstar, which operates roughly 24 satellites, powers Apple’s Emergency SOS feature that enables its devices to send texts in isolated areas.

Six years ago, Amazon unveiled its plans to build a constellation of thousands of low-Earth satellites, designed to provide high-speed, low-latency internet to consumers, corporations and governments, offering connections through square-shaped terminals.

The company has sent up more than 240 satellites since last April through a series of rocket launches handled by partners, such as United Launch Alliance and SpaceX. It recently rebranded the service to Leo from Project Kuiper.

Amazon has faced delays in its satellite deployment milestones. The company in January asked the Federal Communications Commission for more time to meet a deadline that requires it to launch roughly 1,600 satellites by July 2026.

Amazon is trying to catch up to SpaceX’s Starlink service, which currently dominates the internet-from-space market. Starlink has more than 10,000 satellites in orbit and over 9 million users.

SpaceX also has a fledgling direct-to-device business, called Starlink Mobile. The company has acquired multiple spectrum licenses from EchoStar as it looks to build out that network.

FCC Chairman Brendan Carr told CNBC on Tuesday that the agency will review Amazon’s Globalstar deal. He said the FCC is “very open-minded” to the acquisition and it has the potential to make Amazon a competitor to SpaceX in direct-to-cell services.

“Ultimately, we’ll have to take a look at the paperwork and see, but it’s, you know, consistent with the long-term vision that we have to make sure that the U.S. leads in this next-gen era of direct-to-cell technologies,” Carr said in an interview on CNBC’s “Squawk on the Street.”

Amazon and SpaceX have both sought approval from the FCC to expand their satellite constellations. The agency recently granted SpaceX’s request to put another 7,500 satellites into orbit, as well as Amazon’s petition to deploy an additional 4,500 satellites.

Carr said his agency is taking an “all gas no brakes” approach as it looks to expand the U.S. space economy.

He said the FCC is open to SpaceX’s orbital data center plans, which would involve it deploying as many as 1 million satellites. Amazon drew a sharp rebuke from Carr last month after it urged the agency to reject SpaceX’s application.

“We’re ultimately not the arbiter of what technology succeeds or not,” Carr told CNBC. “We shouldn’t be the constraint either, so we’ve directed the staff to move quickly on all of these different applications.”