Bayanat, Yahsat merger to create AI spacetech powerhouse
New entity could lead in geospatial and satellite data, solutions and services
#UAE #spacetech - The boards of G42 geospatial AI services company Bayanat (ADX:BAYANAT) and Mubadala satellite services subsidiary Yahsat (ADX:YAHSAT) have recommended a merger to create an AI-powered spacetech giant with global reach and implied market capitlisation of AED 15 billion ($4.08 billion). Both companies are listed on Abu Dhabi Securities Exchange (ADX). The merger is expected to become effective in the second half of 2024 and the new entity will be called ‘Space42’.
SO WHAT? - G42 acquired the mapping and surveying services company Bayanat in 2020 and, over the past three years, it as grown into a cutting-edge AI-powered geospatial data and services provider. As a result, Bayanat is now able to provide a wide variety of geospatial data services, technologies and solutions using both stored and live satellite data for applications such as smart city management, drone delivery and autonomous vehicle services. Meanwhile, Yahsat services global government, military, business, and individual customers in 150 countries, with a suite of satellite data, media and communications services. The merger between the two companies has the potential to both infuse Yahsat's services with AI and create a compelling proposition for global customer interested in Bayanat's suite of services.
The news of the merger was announced together with the minutes of Yahsat's (Al Yah Satellite Communications Company PJSC) quarterly results board meeting on 18/12/2023.
The intention of the merger is to bring together complementary capabilities to create a UAE-based space technology champion with an implied market capitalization of over AED 15 billion (over $4 billion), based on both entities’ closing share prices as at 18 December 2023, and a free float of 21%.
The combined entity will create a vertically integrated, leading provider of AI-powered geospatial and mobility solutions, satellite communications and business intelligence, with services for upstream, midstream and downstream customers.
Bayanat's AI expertise, and the backing of the G42 group, will help create a platform for transformative technologies to enable space-based services, with the potential to significantly impact on societies and economies
Bayanat and Yahsat shareholders will own 54% and 46% respectively of the new combined entity, while institutional shareholders G42, Mubadala and IHC (ADX:IHC), will own approximately 42%, 29% and 8% respectively.
The new combined company is to be called Space42, following the naming convention of G42’s subsidiaries (e.g. Core42, M42).
On completion of the merger, His Excellency Mansoor Al Mansoori, a member of Abu Dhabi Executive Council and the Chairman of the Department of Health in Abu Dhabi, a member of the board of trustees for Mohamed bin Zayed University of Artificial Intelligence, and a former Chairman of Bayanat will assume the role of Chairman.
Meanwhile, Dr. Bakheet Al Katheeri, Chief Executive Officer of the UAE Investments Platform and Investment Committee Member at Mubadala Investment Company, will become Vice Chairman.
And Karim Michel Sabbagh former E-Space EMEA Managing Director and past global practice leader for communication, media and technology at Booz & Co., will join as Managing Director of Space42.
ZOOM OUT - Formerly the Abu Dhabi government's Military Survey Department (MSD), Bayanat was launched by Mubadala Development Company in 2011 to provide surveying, mapping and geospatial information services to public and private sectors. In January 2020, G42 (Group 42) announced that it had acquired Bayanat with an aim of building AI and data analytics capabilities on top of the company's satellite services in order to create a portfolio of advanced geospatial AI and data services.
G42 and Bayanat proved to be a winning combination, allowing it to deliver AI-powered geospatial solutions to a growing number of sectors such as government services, environment, energy and resources, smart cities and transportation. Today, Bayanat serves a wide range of government and public sector customers from ADNOC (Abu Dhabi National Oil Company) to the UAE's Federal Customs Authority.
A good point of reference for innovation, is Bayanat's Smart Mobility Solutions division, which has become a pioneer in developing autonomous transport, Cloud infrastructure, digital twins, charging infrastructure, mobility, super apps, testing and simulation and other solutions to underpin new mobility services. Abu Dhabi's driverless transport trial, which has been running since 2021, is run on Bayanat services and solutions. However, such offerings are currently limited to the UAE. Yahsat's international footprint and customer base could help take these advanced services and solutions global.
IMO - The Bayanat-Yahsat merger could open up a world of opportunity for both companies, with the ability to create new offerings for existing customers, to add AI and advanced analytics to existing offerings and allow proof-of-concepts that have been tried and tested in the UAE to be exported further afield. The match of technology, services and expertise makes perfect sense. The more complicated part will be company culture. Bayanat has about 300 employees, while Yahsat has about 500. So, human factors could ultimately define success during the coming year or two.
Updated 20-Dec-23 with Space42 and management details
LINKS
Read more about Bayanat driverless transport trials:
G42 starts driverless taxi service trials in Abu Dhabi (Middle East AI News)