Cedar Rose Int. Services Ltd is ISO 27001 certified. Find out more details

Uber acquires Careem: Largest Technology Transaction in the Middle East
1 year ago by Jack Evangelides

Uber acquires Careem: Largest Technology Transaction in the Middle East

Share this:
Uber is set to acquire Careem, the most valuable tech start-up in the Middle East. This acquisition holds great potential for all parties involved. Careem currently operates in over 90 cities whilst employing over a million drivers. Careem, the Dubai-based rival of Uber, has shown a multitude of successes throughout its operations. Although an acquisition is set to take place within the next seven or eight months, Careem will still operate as an independent company. The fact that this acquisition purports to be the largest ever technology transaction, greater than Amazon`s $580 million acquisition of Souq in 2017, lays the foundations for the significance of Careem and the success of Uber. 

History in the Making

Uber`s intentions are to acquire the Dubai-based ride hailing app Careem for a whopping $3.1 billion. The merger will have a lot of nooks and cranny`s to sort through, however, both sides have agreed to a deal that should be finalised within the first quarter of 2020. Importantly, Careem`s employees and fleet of 17,000 limousines, which operate in Dubai and the entirety of the UAE, are set to become a part of the merger.  Nonetheless, this significant agreement of $3.1 billion (Dh 11.39bn) is reportedly welcomed amongst all the parties involved. “It`s a great day for the Middle East, for the region`s thriving tech sector, for Careem, and for Uber.â€? – Dara Khosrowshahi, CEO of Uber Careem`s stakeholders, which include Saudi Arabia`s Prince Alwaleed bin Talal`s investment, firm Kingdom Holdings Company and Rakuten Inc, the Japanese e-commerce company, had agreed to the terms of the arrangement prior to its public announcement. Additionally, according to WAM, the United Arab Emirate`s state news agency, during the meeting there was praise over the safe investment environment that Dubai in the UAE provides to major international companies. 

Ups and Downs

Uber and Careem have previously been a direct competition to one another; both of the company giants have experienced success over one another throughout the Middle East and North Africa. The ups and downs that the two companies experienced may have influenced the final agreed upon deal of a significant $3.1 billion. Careem`s price potentially saw a rise due to their fierce competition against Uber. Nonetheless the deal poses great potential for both companies, with Careem still able to operate independently of Uber. It is also important to note that the breakdown of the price translates to $1.4 billion in cash and $1.7 billion in convertible notes, which can be converted into shares. 

Acquire and Merge

Acquisitions involve long processes of getting to know a business, their operations and the ins and outs of the whole ordeal. The amount of nitty and gritty that is involved can be overwhelming and result in high risks. After months of negotiations, meetings and paperwork, the last thing you`d want is for a merger to fall apart. Therefore, it is important to do your due diligence pre-emptive of any acquisition. Cedar Rose offers a meticulous service that can help with all acquisitions, mergers and ventures into the MENA region, which, like many places, has a minefield of risks amongst a fountain of opportunities. With an Enhanced Due Diligence investigation our expert and experienced local research and analysis teams will be able to overturn every rock in order for you to have as much information as possible on the companies and people involved in any investment in the region. This will give you peace of mind over a long and time-consuming procedure so you can proceed with confidence; secure in the knowledge that Cedar Rose can provide extensive information that will help you to mitigate the risks. Contact orders@cedar-rose.com today to find out more about our Enhanced Due Diligence investigations or check out www.cedar-rose.com for an online quotation. Have you read up on our article concerning data-driven sales? 

Sourced Image: Pixabay 

*** The sole purpose of the article above is to generate public discussion, it has no intention to constitute legal advice. ***
  • Uber
  • Careem
  • Technology
  • Acquisition
  • Merger