Uber to Acquire Careem for $3.1bn

• Uber to Acquire Careem for $3.1bn

Uber, in a joint statement with Careem, announced the global ride-hailing giant will acquire its Middle East rival Careem for $3.1 billion.

“Uber will acquire all of Careem’s mobility, delivery, and payments businesses across the greater Middle East region, ranging from Morocco to Pakistan, with major markets including Egypt, Jordan, Pakistan, Saudi Arabia, and the United Arab Emirates,” it said.

The deal, according to the statement, could be completed as early as this week.

Uber will pay $1.4 billion in cash and the remaining $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 a term-sheet quoted by Bloomberg.

The Dubai-based Careem was established in 2012 and has over a million drivers and 30 million users across 120 cities in the Middle East and North Africa.

According to Dara Khosrowshahi, Uber chief executive, the acquisition is important for Uber’s expansion plans.

“This is an important moment for Uber as we continue to expand the strength of our platform around the world,” Khosrowshahi said.

“Working closely with Careem’s founders, I’m confident we will deliver exceptional outcomes for riders, drivers, and cities, in this fast-moving part of the world.”