According to sources close to the deal, Uber Technologies Inc is gearing up to buy its Dubai-based competitor, Careem for $3.1 Billion. This deal is yet to be officially announced, and since this news is entirely relying on sources, we do expect a little discrepancy in the final figure, as well as the details of the deal. Uber will allegedly pay Careem Networks FZ $1.4 Billion in cash and the remaining $1.7 Billion as convertible notes. These notes will be convertible into shares of Uber Technology, with each share priced at $55.
In order for this deal to go through, the shareholders of Careem must agree to the prices by Monday evening (25th March). These shareholders include Prince Alwaleed bin Talal’s own investment firm as well as Rakuten Inc, which is a Japanese e-commerce company. If this happens on time, the deal can be announced as quickly as Tuesday. As this deal is still mostly under wraps, both, spokespersons from Uber and Careem declined to comment on the matter. The brands will release their own official statements when the deal is announced to the public.
Uber is all set to launch its IPO with the New York Stock Exchange, and this deal will certainly impact it in a positive way. It is believed that the brand will be filing the IPO in April, and experts are expecting a valuation of over $120 Billion for the brand.
Careem, on the other hand, was valued at 1 Billion USD and has been labeled as one of the most valuable tech startups to come out of the middle east. They have more than 1 million drivers that operate across a span of 15 countries in 90 different cities. If this deal goes through, it will show how serious Uber is about gaining entry into the Middle Eastern Market.