Via Satellite illustration

Yahsat has announced a stunning piece of consolidation as it looks to be a part of a brand new AI-powered space technology powerhouse in the Middle East and beyond. It is planning to merge with Bayanat, an AI-powered geospatial solutions provider, also based in the UAE. The combined operation will have an implied market capitalization of over AED 15 billion (over $4 billion), based on both entities’ closing share prices as of Dec. 18. Yahsat announced the planned merger on Dec. 19.

Bayanat and Yahsat will continue to operate independently until the merger is effective, which is expected to take place in the second half of 2024. The proposed transaction will be executed through a share swap with Bayanat as the remaining legal entity. Bayanat shareholders will own approximately 54% and Yahsat shareholders approximately 46% of the combined entity.

The combined entity will be vertically integrated and aims to be to capture regional and international opportunities in geospatial and mobility solutions, satellite communications, and business intelligence. With a strengthened financial position, enhanced AI-powered technological capabilities and a diversified product portfolio, the combination will also establish a platform for transformative technologies to enable space-based services with significant impact on societies and economies.

“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 enlarged entity will benefit from accelerated growth potential as a player of scale with enhanced competitive advantage. This growth will be driven by our access to high-growth markets via cutting-edge technologies and an increased base of local and global customers, in addition to strong financials that allow us to pursue more ambitious growth opportunities. We look forward to working together for the realization of our shared ambition,” Musabbeh Al Kaabi, chairman of Yahsat, said in a statement.