Bayanat and Yahsat to set up AED15 billion AI space tech entity in 2024
Space42 will offer space-based services in MENA and globally
Bayanat AI PLC (Bayanat), a leading AI-powered geospatial solutions provider, and Al Yah Satellite Communications Company P.J.S.C. (Yahsat), a leading global satellite operator, have proposed a merger to establish Space42 – a new vertically integrated AI-powered space technology company.
Bayanat and Yahsat announced the merger plan on December 19, 2023. Both entities will operate independently until the merger is effective sometime in H2 2024.
Space42 – with an implied market capitalisation of AED15 billion ($4.72 billion) – will be one of the world’s most valuable publicly listed space companies by market capitalisation. It will target opportunities in geospatial and mobility solutions, satellite communications and business intelligence across the MENA region and globally.
Bayanat will own approximately 54% and Yahsat about 46% of Space42. Group 42 (G42), Mubadala Investment Company (Mubadala) and International Holding Company (IHC) will own approximately 42%, 29% and 8% of the combined entity, respectively. The merger is subject to shareholder and regulatory approvals.
Space42 will benefit from a strengthened financial position, enhanced AI-powered technological capabilities and a diversified product portfolio, resulting in a platform for transformative technologies to enable space-based services with significant impact on societies and economies.
Space42’s leadership team: Mansoor Al Mansoori, Chair; Dr Bakheet Al Katheeri, Vice Chair; Karim Michel Sabbagh, Managing Director. Together, they will oversee the enlarged entity, working closely with the existing management teams of Bayanat and Yahsat. In addition, the proposed board of Directors of Space42 will include Tareq Al Hosani, Maryam Al Mheiri, Ismail Abdulla and Kiril Evtimov.
Tareq Al Hosani, Chair of Bayanat, said: “This merger will unite two leading home-grown companies to create the MENA region’s first AI-powered space technology company.
“Leveraging our complementary assets, capabilities, and ambitions will allow us to expand across the space value chain and offer an unparalleled service to our combined customer base. We will leverage our key synergies to reinforce our position as a key engine of growth and strategic solutions provider to the UAE government and its agencies while expanding our reach to global customers.”
Musabbeh Al Kaabi, Chair of Yahsat, added: “The merger is a compelling opportunity to amplify value creation for shareholders, utilising synergies and strategic consolidation to create a technologically advanced champion, further reinforcing the UAE’s position as a leader in the AI and space sectors.
“The enlarged entity will benefit from accelerated growth potential as a scale player with enhanced competitive advantage. Our access to high-growth markets will drive this growth via cutting-edge technologies, an increased base of local and global customers, and strong financials that allow us to pursue more ambitious growth opportunities. We look forward to working together to realise our shared ambition.”
Both Bayanat and Yahsat are headquartered in Abu Dhabi emirate in the UAE.
Bayanat’s offerings include topographic, hydrographic and aeronautical products and charts and spatial data surveying, analysis, management, modelling, visualisation and cartography services. Bayanat’s solutions harness vast amounts of premium and unique data from various satellites and conventional mapping and surveying powered by AI to drive geospatial intelligence.
A subsidiary of Abu Dhabi-headquartered Mubadala Investment Company, Yahsat is the UAE’s largest satellite operator, offering multi-mission satellite solutions in more than 150 countries across Europe, the Middle East, Africa, South America, Asia and Australasia.
Featured graphic: Branding announcement of Space42. Graphic: Yahsat
Last Updated on 2 months by Arnold Pinto