Abu Dhabi: Bayanat AI PLC (ADX: BAYANAT), a prominent AI-driven geospatial solutions provider, and Al Yah Satellite Communications Company P.J.S.C. (ADX: YAHSAT), the primary satellite solutions provider in the UAE, has announced that their shareholders have given the green light for the proposed merger between the two Abu Dhabi-based companies.
The merger will form SPACE42, a leading global space technology powerhouse fueled by AI, headquartered in the Middle East North Africa (MENA) region but with a worldwide presence.
On December 18, 2023, the respective Boards of Directors first proposed the merger, which is anticipated to go into force by the middle of 2024. To produce new space-based services that will significantly improve economies and societies, the new organization will combine Yahsat’s outstanding satellite communications capabilities with Bayanat’s advanced geospatial artificial intelligence (AI) capabilities. By delivering a wider range of services and potential for vertical integration, SPACE42 will allow it to offer a unique value proposition, take advantage of economies of scale, and increase profitability along the value chain.
Mansoor Al Mansoori, Chairman Designate of SPACE42, remarked that, “The creation of SPACE42 exemplifies the forward-thinking vision of the UAE’s wise leadership, which emphasizes on innovation as a key driver of advancement and sustainable development. By combining two of the country’s leading space titans, the UAE continues to make major strides on a global scale to push the boundaries of this sector, foster economic growth, develop world-class talent, and advance scientific exploration. Building upon its enormous capabilities, the new entity is poised to play a significant role in realizing the ambitious objectives outlined by the National Space Strategy 2030 and the National Strategy for Artificial Intelligence 2031. SPACE42 will cultivate an AI-powered ecosystem that will further transform the sectors. Undoubtedly, the wider space community will benefit from the UAE’s space advancements.”
With tremendous room for expansion on a regional and worldwide scale, SPACE42 is positioned to rank among the most valuable publicly traded space enterprises in the world. Based on the most current financial figures for 2023, SPACE42 has a combined revenue of AED 2.8 billion ($762 million) and a net income of AED 639 million ($173 million). This puts it in a strong position to generate considerable synergies and add value for all stakeholders. A Financial Framework that prioritizes investments in long-term business growth and expansion while guaranteeing strong profitability and alluring returns to shareholders will bolster its improved financial position.
By combining the strengths of Bayanat and Yahsat, we will establish a global leader in the provision of AI-powered satellite communications, Earth observation, IoT, business intelligence, and geospatial and mobility solutions. This will allow us to expand our services to UAE Government anchor customers and take advantage of business opportunities in both regional and global markets.
Additional regulatory approvals both domestically and internationally are pending for the combination. Both businesses will carry on running separately until the merger takes effect.