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Uber To Acquire UAE-based Careem For $3.1 Bln

Transportation network company Uber announced Tuesday an agreement to acquire UAE-based Careem for $3.1 billion, consisting of $1.7 billion in convertible notes and $1.4 billion in cash.

The acquisition of Careem is subject to applicable regulatory approvals. The transaction is expected to close in Q1 2020.

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.

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.

Careem and Uber will operate their respective regional services and independent brands.

Jefferies LLC acted as exclusive financial advisor to Careem on the transaction.

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