Uber will announce plans to buy Dubai-based rival ride-sharing company Careem, sources told Bloomberg.
The deal, which could be announced as early as this week, will total $3.1 billion — $1.4 billion in cash plus $1.7 billion in convertible notes.Uber will announce plans to acquire Dubai-based rival Careem Networks FZ as early as this week,Uber will pay $1.4 billion in cash and $1.7 billion in convertible notes, which will be convertible into Uber shares at a price equal to $55 per share, according to a term-sheet that Bloomberg said it had seen.
The US-based global logistics and transportation company has been seeking new avenues of growth even as it faces severe competition in its core business of ride-hailing from rivals like Lyft Inc. The IPOs of Lyft and Uber represent a watershed for Silicon Valley's technology unicorns, which for years have snubbed the stock market in favor of raising capital privately, with investors happy to back their frothy valuations.