Proactive Investors - Run By Investors For Investors

Uber inks Middle Eastern expansion ahead of impending IPO with $3.1bn acquisition of rival Careem

Dubai-based Careem, which was founded in 2012, operates in 98 cities in the Middle East, North Africa, Pakistan, and Turkey, compared with Uber’s roughly 23 locations in the region
Uber sign
Uber said it would pay $1.4bn in cash and $1.7bn in convertible notes to take full ownership of Careem

Uber Technologies Inc (PRIVATE-NA:UBER) is paying $3.1bn to acquire Middle East rival Careem, expanding in a competitive region ahead of its impending flotation.

Late on Monday, the ride-hailing app group said it would pay $1.4bn in cash and $1.7bn in convertible notes to take full ownership of Careem.

READ: Uber files for IPO as it kicks off race to float with rival Lyft

Uber said the notes will convert into its shares at a price equal to $55 each, a near 13% increase over Uber’s share price in its last financing round, led by Japan’s SoftBank over a year ago.

The long-expected deal ends months of negotiations between the two companies.

Dubai-based Careem, which was founded in 2012, operates in 98 cities in the Middle East, North Africa, Pakistan, and Turkey, compared with Uber’s roughly 23 locations in the region. Uber operates in more than 70 countries.

The deal is expected to close in the first quarter of 2020, the companies said, meaning it will likely be disclosed in Uber’s initial public offering (IPO) filing.

The group is forecast to kick off its IPO, expected to be on the New York Stock Exchange, next month, with the group likely to be valued at least at $100bn.

View full UBER profile View Profile

Uber Technologies Inc Timeline

Article
April 12 2019

Related Articles

Cybersecurity
July 01 2019
The firm's cybersecurity services range from threat detection to consultancy and vulnerability testing
Phone with apps
July 03 2019
The company owns and operates a scalable B2B SaaS platform that allows users to distribute their mobile apps across multiple app stores such as Google Play
Internet address bar
July 12 2019
In a February trading update, the firm said it had delivered a “strong” performance in 2018 with revenues for the year expected to be around £42.5mln compared to £24.3mln the year before
Copyright © Proactiveinvestors.com, 2019. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use