Abu Dhabi companies Al Yah Satellite Communications Company (Yahsat) and Bayanat AI will merge to create Space42 an AI-powered space technology giant with an implied market capitalisation of 15 billion dirhams ($4 billion).

On completion of the merger, which is expected to take place in the second half of 2024, Mansoor Al Mansoori will assume the role of Chairman, Dr. Bakheet Al Katheeri as Vice Chairman and Karim Michel Sabbagh will join as Managing Director, Bayanat and Yahsat notified Abu Dhabi Stock Exchange (ADX) on Wednesday.

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, the statement said.

The merger will create an AI-powered space technology company in the MENA region with additional potential for significant global growth and synergies.

Al Mansoori is a member of Abu Dhabi Executive Council and the Chairman of the Department of Health in Abu Dhabi. He was previously chairman of Bayanat. Al Katheeri is the CEO of Mubadala’s UAE Investments platform.

The new board and management team will assume their new roles when the merger becomes effective. In the interim, Hasan Ahmed Alhosani and Ali Al Hashemi will continue to lead their companies independently as Managing Director and Group CEO of Bayanat and Yahsat, respectively.

Bayanat is majority owned by Abu Dhabi-based tech conglomerate G42 and Yahsat is subsidiary of Mubadala Investment Company, offering multi-mission satellite solutions in more than 150 countries.

(Reporting by Seban Scaria; editing by Daniel Luiz)