Uber Will Seal the Deal of More than 3 Billion Dollar to Buy Careem

Uber Will Seal the Deal of More than 3 Billion Dollar to Buy Careem

Business

Uber Technologies is all set to announce a cash and share deal of $3.1 billion. This deal would acquire their rival, Careem Networks FZ, based in Dubai and it would get finalized this week. The ride-hailing giant from the United States would pay up an amount of $1.4 billion in cash along with $1.7 billion in convertible notes for Careem. According to the term sheet that Bloomberg has noticed, the notes would get converted into the shares of Uber at a price equivalent to $55 per share.

The shareholders in Careem have got some backers, including the likes of the investment firm of Saudi Prince Alwaleed bin Talal along with Rakuten Inc., the e-commerce company from Japan. They have been asked to agree to the terms of the transaction by the evening on Monday. This would be followed up with the announcement of the deal on the very next day itself. The acquisition of Careem by Uber would come up ahead of their quite imminent initial public offering. This might well turn out to be one of the biggest listings ever on the New York Stock Exchange. It is expected that Uber would file for an IPO in the month of April.

The valuation of Careem was around $1 billion during the round of funding back in 2016. Thus it made the company, the most valuable technology start-ups in the Middle East. As far as Uber is concerned, this deal would signal their commitment towards the Middle East region. This is the region where, a Saudi Arabian wealth fund, one of their biggest investors is based. The acquisition will also allow Uber to get certain expensive operations of overseas, in return for stakes in competitors in the past.

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John Clymer

John is the founder of News Daily and heads the team. He has been in the press profession for 13 years and covers business and finance news.

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