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- 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 is in the midst of preparing for an IPO.
Uber will announce plans to acquire Dubai-based rival Careem Networks FZ as early as this week, Bloomberg reported on Sunday, citing people familiar with the matter.
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.
Careem declined to comment while Uber did not immediately respond to a request for comment.
Uber has been preparing for an initial public offering, and its bankers have indicated that it could be valued at as much as $120 billion.
Read more: Uber reportedly chooses the NYSE for IPO as competitor Lyft gears up to list on the Nasdaq
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.
See Also:
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- Pinterest has officially filed for IPO. Here are all the tech startups that have taken steps toward going public in 2019 — and those rumored to be thinking about it
- Uber reportedly chooses the NYSE for IPO as competitor Lyft gears up to list on the Nasdaq
SEE ALSO: Lyft will be the first ride-hailing company to go public. Here’s how its numbers compare to Uber.
Source: Business Insider –