Uber Technologies has bought Middle East rival Careem for $3.1 billion, the two companies said in a statement Tuesday.

Uber will pay Dubai-based Careem $1.4 billion in cash and another $1.7 billion in convertible notes when the deal closes, the Bloomberg reported. The transaction is expected to close in Q1 2020.

According to the report, Uber CEO Dara Khosrowshahi has cut the largest deal of his tenure.

The deal comes as San Francisco-based Uber is preparing to file in April for an initial public offering, people familiar with the matter have said.

“Uber will acquire all of Careem’s mobility, delivery, and payments businesses across the greater Middle East region, ranging from Morocco to Pakistan, with major markets including Egypt, Jordan, Pakistan, Saudi Arabia, and the United Arab Emirates,” the statement said.

“This is an important moment for Uber as we continue to expand the strength of our platform around the world,” Khosrowshahi said.

Upon closing, Careem will become a wholly-owned subsidiary of Uber, preserving its brand.

Careem co-founder and CEO Mudassir Sheikha will lead the Careem business, which will report to its own board made up of three representatives from Uber and two representatives from Careem… see more

source: thenews