According to Bloomberg, Uber Technologies Inc is set to announce a $3.1 billion cash-and-share deal to acquire its Dubai-based rival, Careem Networks FZ, according to people with knowledge of the matter.
The deal, expected to be announced Tuesday, will see Uber pay $1.4 billion in cash and the remaining $1.7 billion in notes convertible to Uber shares, Bloomberg reported.
Shareholders in Careem, whose backers include Saudi Prince Alwaleed bin Talal’s investment firm and Japanese e-commerce company Rakuten Inc., have been asked to agree to the terms of the transaction by Monday evening and a deal could be announced as soon as Tuesday, the sources informed.
Those reports indicated the deal could be signed as early as Monday and announced by Tuesday, though spokespeople for Uber and Careem did not comment on the matter.
Uber’s acquisition of Careem would come ahead of its imminent initial public offering, which could be one of New York Stock Exchange’s biggest-ever listings. Uber is expected to publicly file for an IPO in April, kicking off a listing that could value the company at as much as $120 billion.
Careem was valued at about $1 billion in a 2016 funding round, making it one of the most valuable technology startups in the Middle East. The company has over a million drivers and operates in more than 90 cities in 15 countries, according to its website.
