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Merger with Bayanat, establishment of Dh15 billion Space42 to serve as transitional shift: Yahsat Group CEO

Merger with Bayanat, establishment of Dh15 billion Space42 to serve as transitional shift: Yahsat Group CEO
26 Apr 2024 21:46

ABU DHABI (WAM)

Ali Al Hashemi, CEO of the Yahsat Group, said the merger with Bayanat to establish Space42 will serve as a transitional shift in the space technology and artificial intelligence (AI) sector in the UAE and the entire region.

He added based in the Middle East North Africa (MENA) region, Space42 is set to be a global AI-powered company specialised in space technology and geospatial solutions with a market value of more than Dh15 billion ($4 billion).

In a statement after shareholders approved the proposed merger during yesterday’s general assembly meeting, Al Hashemi said that the merger between the two companies will combine their strengths and experiences within a sustainable competitive framework, which will set their path of growth and development and help achieve the objectives of the National Space Strategy 2030 and the National Strategy for Artificial Intelligence 2031.

Combining the outstanding capabilities of the two companies enhances Space42's ability to leverage local, regional and international opportunities in the space technology, geospatial solutions and intelligent business analysis sectors, he added, noting that Yahsat’s growth strategy focuses on promising and rapidly growing areas, especially Direct-2-Device (D2D) communication and the Internet of Things (IoT).

Al Hashemi stressed that the new entity will enjoy a solid financial position, advanced technological capabilities supported by AI, and a diverse product portfolio. It will provide a platform for transformative technologies that offer space technology services and solutions with a tangible and positive impact on the economy and society. The new company is also expected to benefit from the integration between the merging of the parties’ operations and economies of scale, which will increase revenues and create opportunities for further growth and innovation, he explained.

Space42 will have a significant regional and international growth potential due to the combined revenues of the two companies amounting to Dh2.8 billion and a combined net income of Dh639 million, based on the latest financial results for 2023, he further added.

Yahsat launched its ambitious D2D strategy in February 2023, to boost global connectivity by directly enabling smartphone users and IoT devices worldwide to leverage the power of space tech, regardless of location, Al Hashemi said.

He explained that the company’s strategy for D2D communication covers two phases. The first is to provide voice and messaging capabilities this year before releasing texting and IoT capabilities on smartphones in 2025, using Yahsat’s Geostationary Earth Orbit (GEO) satellites including, Thuraya 2, Thuraya 3 and Thuraya 4, the latter of which is expected to be launched later this year.

The second phase, known as Project BlueStar, aims to enable full and D2D communication through a scalable and sustainable satellite network, he added.

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