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takyon [soylentnews.org] writes:

Reports: Uber Set To Buy Careem For $3.1B [crunchbase.com]

Uber Technologies' long-rumored purchase of Dubai-based rival Careem could close this week, according to reports [bloomberg.com] citing "people with knowledge of the matter."

The fact that Uber may buy Careem isn't surprising. Crunchbase News reported last September [crunchbase.com] that the deal between the ride-hailing competitors might take place. What is a little unexpected is the currently-expected purchase price.

In September, a buyout was said to value Careem at $2 billion to $2.5 billion. But now, per Bloomberg, Uber is expected to pay $3.1 billion for the company with a mix of cash ($1.4 billion) and convertible notes ($1.7 billion). The notes will be convertible into Uber shares at a price equal to $55 per share, according to the term sheet seen by Bloomberg.

[...] The Careem deal, if consummated, could help Uber's short-term growth rate. As we've reported recently, Uber has seen its growth rate, as measured in percentage terms, decline. While the company remains stiffly unprofitable, slowing growth could prove difficult to square with the valuation it covets.

Careem [wikipedia.org].

Also at Reuters [reuters.com] and Engadget [engadget.com].

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