Uber, a global transport giant has announced that it is set to buy homegrown start-up Careem in a deal worth $3.1 billion, to expand the greater Middle East regional opportunity together.
Uber will purchase Dubai-based Careem with $1.7 billion in convertible notes and $1.4 billion in cash upon closing the deal, the two companies said in a statement. The announcement comes just as Uber is expected to file for IPO (Initial Public Offering) in April, when it will list on the New York Stock exchange. It is set to become one of the biggest listings in the Stock Exchange, with the company’s value going as high as $120bn.
The Careem acquisition represents one of the largest-ever technology deals in the Middle East, according to data compiled by Bloomberg.
We’re proud to announce we’ve agreed to acquire @Careem, one of the Middle East’s most successful startups. We’re excited to partner with @Careem to better serve the region and maintain a tailored local experience for mobility, delivery and payments. More: https://t.co/aXWaEvN6jj
— Uber Comms (@Uber_Comms) March 26, 2019
“This is an important moment for Uber as we continue to expand the strength of our platform around the world. With a proven ability to develop innovative local solutions, Careem has played a key role in shaping the future of urban mobility across the Middle East, becoming one of the most successful startups in the region. 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,” said Uber CEO, Dara Khosrowshahi.
“Joining forces with Uber will help us accelerate Careem’s purpose of simplifying and improving the lives of people, and building an awesome organisation that inspires. The mobility and broader internet opportunity in the region is massive and untapped, and has the potential to leapfrog our region into the digital future. We could not have found a better partner than Uber under Dara’s leadership to realise this opportunity. This is a milestone moment for us and the region, and will serve as a catalyst for the region’s technology ecosystem by increasing the availability of resources for budding entrepreneurs from local and global investors,” said Careem CEO and co-founder, Mudassir Sheikha.