Uber Technologies Inc is set to announce a $3.1-billion cash-and-stock deal to acquire its Dubai-based rival Careem Networks FZ as early as this week, according to sources.
The US ride-hailing giant will pay $1.4 billion in cash and $1.7 billion in convertible notes for Careem, the sources said. The notes will be convertible into Uber shares at a price equal to $55 per share.
Shareholders in Careem, whose backers include Saudi Prince Alwaleed bin Talal’s investment firm and Japanese e-commerce company Rakuten Inc, have been asked to agree to the terms of the transaction by Monday evening and a deal could be announced as soon as Tuesday.
Careem was valued at about $1 billion in a 2016 funding round.