Uber Acquisition: Ride Share Company To Acquire Dubai Competitor

Uber Technologies is expected to announce that it has acquired its Dubai competitor Careem Networks FZ, according to Bloomberg.

Through the acquisition, Uber will purchase Careem for $1.4 billion in cash and another $1.7 billion in convertible notes that will be converted to Uber shares at a price equal to $55 per share, the news outlet reported.

Careem shareholders, which include Saudi Prince Alwaleed bin Talal’s investment firm and Rakuten Inc., a Japanese e-commerce company, have until Monday evening to agree to the deal, which is expected to be announced on Tuesday, Bloomberg said.

Careem will offer Uber more traction in the Middle East, where its largest investor resides – the Saudi Arabia’s sovereign wealth fund. The company has over a million drivers and operates in more than 90 cities in 15 countries. It also offers food and package delivery services as well as bus services, credit transfers, and scheduled rides.

Investors in Careem also include STV, Al Tayyar Travel Group Holding Co., and Daimler AG.

News of the acquisition comes as Uber looks to enter into an initial public offering with a valuation as high as $120 billion – the largest the New York Stock Exchange could see as a listing, Bloomberg reported.