Yahsat and Bayanat to merge into $4bn AI-focused space technology company

Yahsat, a satellite operator, and Bayanat, an analytics provider, have recently announced an all-share merger, forming a new entity named Space42. This merger, valued at 15 billion dirhams ($4.1 billion), aims to create the Middle East and North Africa (MENA) region’s first AI-powered space technology company.

Under the proposed deal, Bayanat will become the legal entity, with its shareholders holding a majority stake of around 54 percent in the merged business. Yahsat shareholders, based in Abu Dhabi, will retain the remaining ownership. The merger seeks to combine the strengths, assets, and ambitions of both companies, enabling them to expand across the space value chain and provide unmatched services to their customers.

H.E. Tareq Al Hosani, Chairman of Bayanat, expressed his excitement about the merger, stating that it will unite two leading home-grown companies and revolutionize the MENA region’s space technology sector with the power of artificial intelligence. The merger aims to leverage synergies and reinforce the new entity’s position as a key growth engine and strategic solutions provider to the UAE government, its agencies, and global customers.

The combined entity will see significant ownership from prominent entities such as Group 42 (G42), Mubadala Investment Company (Mubadala), and International Holding Company (IHC), holding approximately 42 percent, 29 percent, and eight percent, respectively. This collaboration is expected to amplify value creation for shareholders, establishing a technologically advanced champion and further solidifying the UAE’s leadership in the AI and space sectors.

While regulatory approval from government authorities is pending, the merger is anticipated to proceed in the second half of the coming year. Until the merger becomes effective, both Yahsat and Bayanat will continue to operate independently, ensuring uninterrupted service to their customers.

This merger signifies an exciting milestone in the space technology industry, promising advanced capabilities and opportunities for growth. It further highlights the UAE’s commitment to becoming a global leader in the AI and space sectors, propelling the nation’s technological advancements and contributing to the ever-evolving field of space exploration.

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