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Uber Buying Careem For $3.1 Billion

According to Bloomberg, Uber is set to announce a deal to acquire Careem for $3.1 billion this week.

HOLY SHIT THAT’S THE LARGEST TECH DEAL FROM THE REGION.

“Uber Technologies Inc. is set to announce a $3.1 billion cash-and-share deal to acquire its Dubai-based rival Careem Networks FZ as early as this week, according to people with knowledge of the matter, Bloomberg News’ Dinesh Nair, Matthew Martin and Nour Al Ali report.”

“The U.S. ride-hailing giant will pay $1.4 billion in cash and $1.7 billion in convertible notes for Careem, the people said, asking not to identified because the talks are private. The notes will be convertible into Uber shares at a price equal to $55 per share, according to the term-sheet seen by Bloomberg.”

This news doesn’t come as a surprise, as Bloomberg also previously reported that Uber was in advanced talks to acquire Careem but no final agreement had been reached.

Careem’s exit has been a topic of much interest for investors in the Middle East, where this would be the first unicorn exit for the region. Moreover, given how things turned out with Abraaj Group, this is the sort of news they’re hoping will set the direction for their market.

Many Pakistanis will also be looking at this deal with great zeal. Careem’s co-founder and CEO, Mudassir Sheikha, is from Pakistan and a source of inspiration for many aspiring entrepreneurs. So while the company is headquartered out of Dubai, many Pakistanis will claim Careem’s exit a win for Pakistani startups – you can’t blame them when the technology of the company was developed locally as well.

On another note, after the fall of Abraaj, this will help fix image of Pakistani executives in large corporations. You know, one fucked it up really badly by causing a massive financial disaster and the other does the opposite so everything balances out? Well, hopefully.

Uber itself is gearing up for a massive $120 billion IPO around April, possibly the largest one that will happen this year. This deal is part of Uber’s IPO plan as it would help it establish its presence in the Middle East where it has experienced intense pressure from Careem in the past. In addition, it also signals the importance of the Middle East (and Pakistan) as part of its global strategy.

What are your thoughts on this? Are you excited? Let us know in the comments.

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