Uber Technologies is set to Provide over $3 billion to Purchase Dubai-based rival Careem Networks FZ, two sources Knowledgeable about the deal told Reuters.
Uber’s provide could be unveiled during the early part of this week, a third source added.
Uber will pay $1.4 billion in cash and $1.7 billion in convertible notes, which will be convertible into Uber shares at a price equal to $55 per share, Bloomberg had earlier reported, citing a term-sheet.
Careem declined comment while Uber did not immediately respond to a request from Reuters to remark.
Uber has been preparing for an initial public offering, and its shareholders have indicated that it could be valued at up to $120 billion.
The US-based global logistics and transportation company has been searching for new avenues of growth even as it faces severe competition in its core business of ride-hailing from rivals such as Lyft.
The IPOs of Lyft and Uber represent a landmark for Silicon Valley’s tech unicorns, which for years have snubbed the stock market in favor of raising capital privately, with investors pleased to back their valuations.