Abu Dhabi-headquartered satellite operator Yahsat (Al Yah Satellite Communications Company P.J.S.C.) and analytics provider Bayanat (Bayanat AI) have reached an agreement for an all-share merger, marking a significant development in the space technology sector. In a joint announcement earlier this week, the two companies revealed that the combined entity, named Space42, is estimated to be valued at 15 billion dirhams ($4.1 billion).
According to the statement, the merger would make the new company one of the most valuable publicly listed space companies in the world by market capitalization, with additional potential for significant global growth and synergies. The combined entity will be vertically integrated and optimally positioned to capture regional and international opportunities in geospatial and mobility solutions, satellite communications and business intelligence.
Under the proposed deal, Bayanat will become the legal entity, with its shareholders holding approximately 54 percent of the merged business, while Yahsat shareholders based in Abu Dhabi will retain the remainder.
H.E. Tareq Al Hosani, Chairman of Bayanat, expressed, “This merger will unite two leading home-grown companies to create the MENA region’s first AI-powered space technology company.” He emphasized the potential to leverage key synergies to reinforce their position as a key engine of growth and strategic solutions provider to the UAE government and its agencies, while expanding reach to global customers.
Musabbeh Al Kaabi, Chairman of Yahsat, highlighted the strategic significance of the merger, stating, “The merger is a compelling opportunity to amplify value creation for shareholders, utilizing synergies and strategic consolidation to create a technologically advanced champion, further reinforcing the UAE’s position as a leader in the AI and space sectors.”
The ownership structure of the combined entity will include Group 42 (G42) with approximately 42 percent, Mubadala Investment Company (Mubadala) with 29 percent, and International Holding Company (IHC) with eight percent.
Upon the finalization of the merger, H.E. Mansoor Al Mansoori is slated to assume the position of Chairman, with Dr. Bakheet Al Katheeri serving as Vice Chairman, and Karim Michel Sabbagh appointed as the Managing Director of Space42. In this capacity, they will collaborate closely with the existing management teams of Bayanat and Yahsat. The proposed Board of Directors for Space42 is expected to include H.E. Tareq Al Hosani, H.E. Maryam Al Mheiri, Ismail Abdulla, and Kiril Evtimov.
H.E. Mansoor Al Mansoori, a member of the Abu Dhabi Executive Council and Chairman of the Department of Health in Abu Dhabi, previously served as Chairman of Bayanat and played a pivotal role in overseeing its IPO. Concurrently, he held the position of Group Chief Operating Officer of G42.
Dr. Bakheet Al Katheeri, currently the Chief Executive Officer of Mubadala’s UAE Investments platform, holds various roles on industry boards and committees in both the UAE and globally.
Karim Michel Sabbagh, who recently served as the Managing Director and lead for Europe and the Middle East at E-space, has an extensive background as the former President and CEO of SES, Chairman of SES ASTRA, and a member of the Board of Directors of O3b Networks, before its acquisition by SES.
The merger is poised to undergo regulatory approval from government authorities, with expectations for completion in the second half of the next year. Until the merger becomes effective, both Yahsat and Bayanat will continue to operate independently. This strategic alliance signals a transformative step toward advancing AI-powered space technology, positioning the UAE as a key player in this rapidly evolving industry.
