US ride-hailing service Uber has confirmed it will wholly acquire Middle Eastern rival Careem in a cash and convertible notes deal worth $3.1bn, well above Careem's most recent valuation of $2bn. The price-tag Uber is paying for Careem is notable for being considerably higher than recent reports of its valuation. Uber CEO Dara Khosrowshahi told staff in a memo that, post-acquisition, the two companies would continue to operate as separate entities but hinted at possible future integrations. The deal, which is expected to close by year-end, comes after months of failed attempts to revive negotiations after more than 1,000 union workers were locked out in January 2018 The deal is set to close in Q1 2020.
US ride-hailing service Uber has confirmed it will wholly acquire Middle Eastern rival Careem in a cash and convertible notes deal worth $3.1bn, well above Careem's most recent valuation of $2bn. Uber CEO Dara Khosrowshahi told staff in a memo that, post-acquisition, the two companies would continue to operate as separate entities but hinted at possible future integrations. The deal, which is expected to close by year-end, comes after months of failed attempts to revive negotiations after more than 1,000 union workers were locked out in January 2018 The deal is set to close in Q1 2020.