Contributors "Data" And"Yahsat" They agree to the merger of the two companies to create "Space 42”
Abu Dhabi, April 25 / WAM / Bayanat Company and Al Yah Satellite Communications Company “Yahsat”, listed on the Abu Dhabi Stock Exchange, today announced shareholders’ approval of the proposed merger between the two Abu Dhabi-based companies.
The merger will create SPACE42, a leading AI-powered space technology company in the MENA region with a significant global presence.
The merger was initially recommended by the boards of directors of the two companies on December 18, 2023, and is expected to take effect in mid-2024.
The new entity will combine Bayanat’s advanced geospatial AI capabilities with Yahsat’s advanced satellite communications capabilities to create new services based on space technologies, which will have a significant positive impact on societies and economies.
SPACE42 will provide an expanded range of solutions, services and vertical integration opportunities, enabling it to deliver a differentiated value proposition, benefit from economies of scale and improve profitability across the value chain.
His Excellency Mansour Al Mansouri, appointed Chairman of the Board of Directors of SPACE42, said: “The establishment of SPACE42 comes as an embodiment of the vision of the wise leadership of the UAE, which attaches special importance to innovation as the main tool for development and progress and ensuring the process of sustainable development. Through the merger between two of the country’s space giants, the UAE continues to… Adding qualitative and significant shifts in the space sector, which opens broad horizons for the growth of the sector at the global level, enhancing economic growth, developing world-class cadres, and promoting scientific exploration. The new entity, with its huge potential, will also have an important role in achieving the ambitious goals set by the National Space Strategy 2030 and the National Strategy for Artificial Intelligence 2031, as SPACE42 will work to develop a work system supported by artificial intelligence that will increase the pace of sector transformation. There is no doubt that the space community in general will benefit from the developments witnessed by the space sector in the UAE.”
For his part, Karim Al-Sabbagh, Managing Director-designate of SPACE42, said: “Walahsat data has laid a strong foundation for SPACE42 to build upon with huge potential to revolutionize the space technology sector. Through the combined expertise of the two companies, SPACE42 brings a unique offering to the market, combining satellite communications Geospatial intelligence and artificial intelligence to pioneer innovative solutions. The merger represents an important step for shareholders, and also confirms our commitment to strengthening the UAE’s global leadership position in the field of space technology supported by artificial intelligence.”
SPACE42 has great potential for growth, both regionally and globally, and is on its way to becoming one of the most valuable publicly traded space companies in the world. With combined revenues of AED 2.8 billion and net income of AED 639 million based on its latest 2023 financial results, SPACE42 is well positioned to create greater value for all stakeholders with the potential for significant business synergy.
Its strong financial position will also be supported by a financial framework that will prioritize investment in business growth and sustainable expansion, while ensuring strong profitability and attractive returns for shareholders.
The strengths possessed by Bayanat and Yahsat will contribute to the establishment of a global company for satellite communications and geospatial solutions and services supported by artificial intelligence, which will enable it to enhance its services to the main clients of the UAE government, in addition to expanding in seizing commercial opportunities in regional markets. And global.
The merger is subject to further regulatory approvals in the UAE and internationally. The two companies will continue to operate independently until the merger becomes effective.
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