Technology, Transport & Logistics, UAE

Uber to acquire Dubai-based Careem for $3 billion: report

Uber is reportedly gearing up to announce a $3.1 billion cash-and-share deal to acquire its Dubai-based rival Careem as early as this week.Uber, Careem

According to a Bloomberg report, which cited people with knowledge of the matter, US ride-hailing giant will pay $1.4 billion in cash and $1.7 billion in convertible notes for Careem.

The notes will be convertible into Uber shares at a price equal to $55 per share, according to the term-sheet seen by Bloomberg.

Uber’s acquisition of Careem would come ahead of its imminent initial public offering, which could be one of the New York Stock Exchange’s biggest-ever listings. The company’s IPO could be valued at as much as $120 billion, according to reports.

Dubai-based Careem is backed by investments from organisations such Japanese e-commerce company Rakuten, German automaker Daimler AG and Saudi Prince Alwaleed bin Talal’s investment firm who have all been asked to agree to the terms of the transaction by Monday evening and a deal could be announced as soon as Tuesday, the people said.

The company was valued at a little more than $1 billion in a 2016 funding round, making it one of the most valuable technology startups in the Middle East.

Careem has more than a million drivers and operates in more than 100 cities in the UAE, Qatar, Saudi Arabia, Bahrain, Lebanon, Pakistan, Kuwait, Egypt, Morocco, Jordan, Turkey, Palestine, Iraq and Sudan, according to its website. The app lets customers book rides on cars, bikes, golf carts, boats and rickshaws as well as schedule deliveries.

Uber spokesman Matt Kallman declined to comment while a spokesman for Careem wasn’t immediately able to comment, according to Bloomberg.


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