In a joint statement made by Uber and Careem, the US based ride haling app Uber has confirmed it is to acquire Dubai rival Careem in a cash and stock deal worth Dhs 11.38 billion ($3.1 billion.) In the announcement made on Tuesday 26 March, Dhs 5.14 billion ($1.4 billion) will be paid in cash and Dhs 6.24 billion ($1.7 billion) in notes that will be converted to Uber shares.
The deal which needs regulatory approval, will being finalised within the next 12 months and by the first quarter of next year. After the acquisition, Uber will have a virtual monopoly in the region, making it an attractive option for investors.
The announcement of the acquisition comes ahead of Uber’s intended IPO on the New York Stock Exchange, which is expected to value Uber at around Dhs 440 billion ($120 billion).
Careem, was launched in Dubai in July 2012, and now serves customers in over 120 cities across 15 countries in the Middle East, Turkey and Pakistan.