Bayanat & Yahsat shareholders approve merger to set up SPACE42

By Shilpa Annie Joseph, Official Reporter
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Bayanat-Yahsat merger to create SPACE42
Rep. Image | Courtesy: Freepik

Bayanat, a leading AI-powered geospatial solutions provider, and Al Yah Satellite Communications Company (Yahsat), the UAE’s flagship satellite solutions provider, have announced 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.

Further, 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.

According to the statement, 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.

Commenting on this significant milestone, Mansoor Al Mansoori, Chairman Designate of SPACE42, said 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,” Al Mansoori added.

Karim Sabbagh, Managing Director Designate of SPACE42, noted that, “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.”

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