Abu Dhabi - Mubasher: Al Yah Satellite Communications Company (Yahsat) has acquired minority equity in eSAT Global Inc, an internet of things (IoT) connectivity solutions provider.
The acquisition aligns with Yahsat’s strategy to participate in fast-growing sectors such as the IoT market, according to a recent press release.
The overall IoT market is expected to witness a compound annual growth rate (CAGR) of 22% to $525 billion during the coming five years, while the satellite IoT business is forecast to generate total revenues worth $6 billion in the same period.
Furthermore, Thuraya, a mobile satellite services subsidiary of Yahsat, has signed a commercial agreement with eSAT to secure its business with a low-power wide-area (LPWAN) network IoT system.
The system will be deployed over Thuraya’s Mobile Satellite Services (MSS) geostationary and earth orbit (GEO) assets to provide customers with IoT portfolio access on a global scale.
Through the collaboration with eSAT, Thuraya’s service partners will be able to address critical IoT needs in key segments, including smart agriculture, environmental monitoring, digital maritime, and cold-chain tracking.
Meanwhile, Thuraya plans to launch the IoT system and portfolio while starting commercial activities by the fourth quarter (Q4) of 2023.
Ali Al Hashemi, CEO of Yahsat, said: “Through this partnership, we will be able to serve our customers even more effectively by offering smart, reliable, and customizable solutions that will unlock new and exciting opportunities across a range of sectors.”
Rick Somerton, CEO and President of eSAT Global, commented: “It is very exciting for us to have Yahsat, through their investment, endorsing our belief that their GEO’s will deliver low-cost, low-power, and low-latency IoT connectivity.”
During the first half (H1) of 2022, the net profits attributable to the shareholders of Yahsat surged by 50% year-on-year (YoY) to $45.36 million from $30.10 million. The firm will pay out cash dividends of AED 196.60 million for H1-22 on 14 October.
