Abu Dhabi – Mubasher: Thuraya Telecommunications Company, the mobile satellite services subsidiary of Al Yah Satellite Communications Company (Yahsat), concluded heads of terms for an investment agreement with Astrocast, a low earth orbit (LEO) and internet of things (IoT) network operator.
The transaction, which will be carried out through a convertible loan worth $17.50 million, marks Thuraya’s first investment in an LEO satellite constellation, according to a press release.
The partnership aligns with Thuraya’s strategy to reinforce its position in the IoT industry. It will also boost the unit’s exposure to the fast-growing sector.
Overall IoT market is forecast to widen at a compound annual growth rate (CAGR) of 22% to $525 billion in the coming four years, while the satellite IoT business is expected to generate cumulative revenues of $6 billion during the same period.
Ali Al Hashemi, Group CEO of Yahsat, said: "We are pleased to further strengthen our relationship with Astrocast as we mutually explore ways to expand our service offering across [geostationary earth orbit] GEO and LEO assets to unlock greater growth potential.”
“Through this agreement, we are committed to enabling innovative solutions in the maritime, energy, logistics, transportation, mining, and agriculture industries,” Al Hashemi continued.
Fabien Jordan, Founder and CEO at Astrocast, noted: “Collaborating on creating new products and applications and leveraging the Thuraya distribution network will expedite the expansion of our customer ecosystem.”
In the January-December 2022 period, the net profits attributable to the shareholders of Yahsat dropped to $65.56 million from $69.76 million in 2021.
