Shareholders of Bayanat AI PLC, an AI-powered geospatial solutions provider, and Al Yah Satellite Communications Company (Yahsat), a satellite solutions provider, have approved the merger of the two Abu Dhabi-headquartered and ADX-listed entities to create SPACE42, a global AI-powered space technology company.

The new entity, which will be based in the MENA region, will consolidate Bayanat’s Geospatial AI capabilities with Yahsat’s satellite communications to create new space-based services that will provide AI-powered geospatial and mobility solutions, Earth Observation, satellite communications, IoT, and business intelligence to the UAE and international markets.

The merger was initially proposed by the respective Boards of Directors on December 18, and is expected to become effective by mid-2024.

Mansoor Al Mansoori, Chairman Designate of SPACE42, said the new entity was poised to play a role in realising the objectives outlined by the UAE’s National Space Strategy 2030 and the National Strategy for Artificial Intelligence 2031.

With a combined revenue of AED 2.8 billion and net income of AED 639 million based on the recent 2023 financial results, SPACE42 will be supported by a financial framework that will prioritise investments in sustained business growth and expansion.

The merger is subject to further regulatory approvals in the UAE and internationally. Both companies will continue to operate independently until the merger is effective.

(Writing by Bindu Rai, editing by Seban Scaria)