Bayanat and Yahsat shareholders have approved the merger, creating SPACE42! The merger of G42 geospatial AI company Bayanat and Mubadala satellite services subsidiary Yahsat has been given the green light, forming a $4 billion group named SPACE42. The General Assembly Meetings of both companies, held concurrently, voted on the merger.

In 2023, the two ADX-listed companies generated combined revenue of AED 2.8 billion ($76.7b) and net income of AED 639 million ($175m). This merger will establish an AI-powered spacetech and satellite services giant with global reach and a potential market capitalization of AED 15 billion ($4.08 billion).

The strategy behind the merger is to capitalize on Bayanat and Yahsat’s strengths to offer AI-powered geospatial and mobility solutions, Earth Observation, satellite communications, IoT, and business intelligence to UAE government anchor customers, as well as to pursue new regional and global commercial opportunities.

Karim Michel Sabbagh, formerly the Senior Partner for the Middle East at Booz & Co. (now Strategy&), was appointed as the managing director designate of SPACE42 in December. Sabbagh has previously held roles such as Managing Director at E-Space, and President and CEO of SES, where he led the company through a restructuring.

The merger will be carried out through a share swap, with Bayanat remaining as the legal entity for the merged venture. After the merger, Bayanat and Yahsat shareholders are expected to own 54% and 46% of the new combined entity, respectively. Both companies will operate independently until the merger becomes effective, which is anticipated to occur in the second half of 2024.