Abu Dhabi [UAE], April 26: Bayanat AI PLC (ADX: BAYANAT), a leading AI-powered geospatial solutions provider, and Al Yah Satellite Communications Company P.J.S.C. (ADX: YAHSAT), the UAE's flagship satellite solutions provider, announced today that their shareholders have approved the proposed merger of the two Abu Dhabi-headquartered entities. The merger will create SPACE42, a global AI-powered space technology champion based in the Middle East North Africa (MENA) region with global reach.
The merger was initially proposed by the respective Boards of Directors on 18 December 2023, and is expected to become effective by mid-2024. The new entity will consolidate Bayanat's advanced Geospatial Artificial Intelligence (AI) capabilities with Yahsat's advanced Satellite communications capabilities to create new space-based services that will have a significant positive impact on societies and economies. SPACE42 will provide an expanded scope of service offerings and vertical integration opportunities, enabling it to offer a differentiated value proposition, utilize economies of scale and improve profitability across 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 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."
Karim Sabbagh, Managing Director Designate of SPACE42, said: "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 UAE's position as a global AI-powered SpaceTech leader."
SPACE42 has significant potential for growth, both regionally and globally, and is poised to become one of the world's most valuable publicly listed space companies. With a combined revenue of AED 2.8 billion and net income of AED 639 million based on the recent 2023 financial results, SPACE42 is well positioned to bring increased value to all stakeholders with the potential for significant synergies. Its strengthened financial position will be supported by a Financial Framework that will prioritize investments in sustained business growth and expansion, while ensuring robust profitability and attractive returns to shareholders.
Leveraging the strengths of Bayanat and Yahsat will create a global champion providing AI-powered geospatial and mobility solutions, Earth Observation, satellite communications, IoT, and business intelligence to expand our services to UAE Government anchor customers and seize commercial opportunities across regional and international markets.
The merger is subject to further regulatory approvals in the UAE and internationally. Both companies will continue to operate independently until the merger is effective.
Source: Emirates News Agency