Uber Technologies is acquiring Dubai-based Careem Networks FZ, Bloomberg reported referring to sources.
Uber will pay $1.4 billion in cash and $1.7 billion in convertible notes for Careem. This means that the U.S. company will have to pay $3.1 billion in total.
Careem Networks FZ is one of Uber's competitors. The company has its headquarters in Dubai and operates in 100 cities and 14 countries in the Middle East, Africa and South Asia.
Uber has recently introduced an incentive program for its drivers that will allow them to receive a cash reward that they can convert into company shares.
Careem shareholders, whose backers include Saudi Prince Alwaleed bin Talal's investment company and Japanese e-commerce firm Rakuten Inc., have until Monday evening to agree to the terms of the deal.
The agreement could be announced tomorrow.
Subscribe to our Telegram channel to stay up to date on the latest crypto and blockchain news.