US ride-hailing giant Uber is set to announce $3.1 billion acquisition of its Dubai-based rival Careem in a cash and stock deal.
Uber will be paying $1.4 billion in cash and $1.7 billion in convertibles. The notes will be convertible into Uber shares at a price equal to $55 per share.
Careem, which has a much bigger footprint than Uber in the region with its services available across 15 countries and more than 100 cities including many second-tier cities, has raised close to $800 million in investments until now.
Shareholders in Careem, including Saudi Prince Alwaleed bin Talal’s investment firm and Japanese e-commerce company Rakuten Inc., have reportedly been asked to agree to the terms of the transaction by Monday evening and a deal could be announced as soon as Tuesday.
Careem’s current Total Addressable Market (TAM) opportunity in Mena, Turkey, and Pakistan is huge, it seeks to become the biggest mover of people in the Middle East,
North Africa, Turkey and Pakistan region comprising 20 countries, 700 million people, 380 million people in cities and a current $10-12 billion ride hailing market potential.