The UAE’s flagship satellite solutions provider, Yahsat, has acquired a minority stake in eSAT Global Inc, an innovative Internet of Things (IoT) connectivity solutions provider.
The deal aims to bring a new disruptive, low-cost, low-latency, direct-to-satellite, IoT service to the market, according to an Abu Dhabi Securities Exchange (ADX) filing Tuesday.
Yahsat's mobility business Thuraya also signed a commercial agreement with eSAT. The agreement aims to provide Thuraya with secure and long-term access to an end-to-end Low Power Wide Area Network (LPWAN) IoT system and portfolio. Thuraya is planning to launch the IoT system and portfolio and begin commercial activities by the fourth quarter of 2023, the filing said.
Investment in eSAT and the commercial agreement mark an important milestone for the company's IoT strategy, Yahsat said. It added that investment represents an opportunity to participate in a fast-growing sector, that is still significantly under-penetrated, and that it is closely aligned with Yahsat’s strategy of prioritizing growth sectors.
Devices equipped with the new eSAT communication module will be able to communicate with satellites using very low transmit power anywhere within Thuraya’s footprint, the company said. Yahsat is a subsidiary of Abu Dhabi’s sovereign wealth fund Mubadala Investment Company. The satellite solutions company listed its shares on the Abu Dhabi Securities Exchange (ADX) in July 2021. It was added to the FTSE UAE Small Cap Index on December 20 of last year.
On February 14, Yahsat Government Solutions (YGS), the government arm of Yahsat has been awarded a $247.5 million contract to provide the UAE government with satellite communications services. The agreement builds on Yahsat’s existing partnership with the UAE government, which included the operation and maintenance of the Al Yah 1 and Al Yah 2 satellites since 2011.
Earlier the same month, YGS was awarded a $6.5 million contract by Abu Dhabi Ship Building (ADSB) to design and produce satellite communication systems in ADSB’s vessels.
