After much speculation and rumors, it has now been confirmed that Uber has agreed to buy Careem in a $3.1 billion deal allowing the Dubai-based ride hailing platform to remain independent after the acquisition.
The deal is set to be the largest in the technology sector in the Middle East so far, overtaking Amazon’s $580 million acquisition of Souq in 2017.
Uber will buy Careem’s multiple businesses across all of its markets. The $3.1bn will split into $1.4bn in cash and $1.7bn in notes convertible to Uber stock, and is expected close in the first quarter of next year after receiving regulatory approvals.
The acquisition makes Careem a wholly owned subsidiary of Uber and will keep the Careem brand and app running. Careem co-founders Mudassir Sheikha, Magnus Olsson and Abdulla Elyas are staying on with Careem following the acquisition, the companies said.
Congratulations to every @Careem Captain, Customer and Colleague on this special moment. We've been blessed to impact the lives of millions in the region and it’s only the start as we join forces with @Uber.
— Mudassir Sheikha (@MudassirSheikha) March 26, 2019
Full press release can be found here.
