Finally, an agreement has been executed between Uber and Careem through which uber will pay $3.1 Billion to acquire Careem. However, approvals of relevant regulatory authorities will also be required for the deal to legally close.
Careem’s delivery, mobility and businesses in the Middle East region, including Pakistan, Jordan, Saudi Arabia (KSA), and the UAE will be acquired by Careem.
Most probably the deal will be closed in 2020(1st Quarter). Once the deal is closed Careem will be considered as the full-fledged subsidiary of Uber, however, Careem will preserve its brand name. Careem’s business will be lead by Co-founder and CEO Mudassir Sheika.
Importantly both Careem and Uber will continue to separately operate in their respective regions with separate brands.
“This is an important moment for Uber as we continue to expand the strength of our platform around the world. With a proven ability to develop innovative local solutions, Careem has played a key role in shaping the future of urban mobility across the Middle East, becoming one of the most successful startups in the region. Working closely with Careem’s founders, I’m confident we will deliver exceptional outcomes for riders, drivers, and cities, in this fast-moving part of the world,” said Uber CEO Dara Khosrowshahi.
“Joining forces with Uber will help us accelerate Careem’s purpose of simplifying and improving the lives of people, and building an awesome organization that inspires. The mobility and broader internet opportunity in the region is massive and untapped and has the potential to leapfrog our region into the digital future. We could not have found a better partner than Uber under Dara’s leadership to realize this opportunity. This is a milestone moment for us and the region, and will serve as a catalyst for the region’s technology ecosystem by increasing the availability of resources for budding entrepreneurs from local and global investors,” said Careem CEO and co-founder, Mudassir Sheikha.
It is worth mentioning here that this transaction would be greatest ever in technology industry specifically in Middle Eastern region. This major transaction was executed by Jefferies LLC the capacity as a Financial Advisor.
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