The merger is subject to further regulatory approvals in the UAE and internationally.
Bayanat, an AI-powered geospatial solutions provider, and Yahsat, the UAEs flagship satellite solutions provider, have approved the proposed merger of the two Abu Dhabi-based entities. This move will create SPACE42, a powerhouse in AI-powered space technology with a MENA base and global reach.
Initially proposed by their respective Boards of Directors on December 18, 2023, the merger is anticipated to be finalised by mid-2024. SPACE42 will amalgamate Bayanats cutting-edge Geospatial Artificial Intelligence (AI) capabilities with Yahsats advanced Satellite communications expertise to forge innovative space-based services, catalysing positive impacts on societies and economies. The new entity will broaden its service portfolio and capitalise on vertical integration opportunities, thereby offering a value proposition, leveraging economies of scale, and enhancing profitability throughout the value chain.
Commenting on this significant milestone, Mansoor Al Mansoori, Chairman Designate of SPACE42, said: The creation of SPACE42 exemplifies the forward-thinking vision of the UAEs wise leadership, which emphasises on innovation as a key driver of advancement and sustainable development. By combining two of the countrys 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 UAEs space advancements.
Karim Sabbagh, Managing Director Designate of SPACE42, added: “Bayanat and Yahsat have laid strong foundations for SPACE42 to build upon with enormous potential to disrupt the space-tech industry. With the combined expertise of both businesses, SPACE42 brings a unique offering to the market, merging satellite communications, geospatial intelligence and AI to pioneer innovative solutions. The merger marks a significant step for shareholders and underscores our commitment to advance the UAEs position as a global AI-powered SpaceTech leader.”
With a combined revenue of AED 2.8bn ($0.76bn) and net income of AED 639m ($173.97m) based on the recent 2023 financial results, SPACE42 is positioned to become one of the world’s most valuable publicly listed space companies. This consolidation is expected to generate significant synergies, delivering enhanced value to stakeholders. Bolstered by a robust Financial Framework, SPACE42 will prioritise investments in sustainable business growth and expansion while ensuring strong profitability and attractive returns for shareholders.
By harnessing Bayanat and Yahsats strengths, SPACE42 aims to emerge as a global leader in AI-powered geospatial and mobility solutions, Earth Observation, satellite communications, IoT, and business intelligence. The merger will enable SPACE42 to extend its services to UAE Government anchor customers and capitalize on commercial opportunities in regional and international markets.
While the merger awaits further regulatory approvals in the UAE and globally, both companies will continue to operate independently until its effective integration.
