Acquisition

Careem and Uber Technologies: the deal on record

Uber agreed in March 2019 to acquire Careem, a ride hailing, delivery and payments company operating across the Middle East, North Africa and Pakistan, for USD 3.1 billion in cash and convertible notes. The deal closed on 2 January 2020, with Uber paying 75 percent of the maximum price at closing and holding back the rest. In December 2023 the UAE telecoms group e& completed a USD 400 million purchase of a 50.03 percent stake in the separated Careem Everything App, while Uber kept the ride hailing business.^1,2,4,5

Timeline

1. 26 March 2019Uber announces an agreement to acquire Careem, which would keep its own brand and app.²
2. 17 September 2019Uber completes a USD 1.2 billion notes offering, saying it will use the proceeds mainly to pay part of the Careem price.³
3. 2 January 2020Uber completes the acquisition, paying the full cash portion of the price and 75 percent of the maximum aggregate purchase price overall, with the rest held back, according to its 8-K.⁴
4. 8 December 2023e& completes its USD 400 million acquisition of 50.03 percent of Careem Technologies, the non ride hailing businesses.⁵

Status now

Careem ride hailing is owned by Uber. The Careem Everything App is majority owned by e& since December 2023.⁵

Sources

1. Uber Technologies via SEC EDGAR, Uber first quarter 2019 results press release (Exhibit 99.1 to Form 8-K) (30 May 2019)
2. AFP (via Business Standard), Uber to buy Mideast rival Careem for $3.1 bn (26 March 2019)
3. US Securities and Exchange Commission (EDGAR), Uber Technologies Form 8-K, senior notes offering (17 September 2019)
4. US Securities and Exchange Commission (EDGAR), Uber Technologies Form 8-K, completion of Careem acquisition (6 January 2020)
5. The National, UAE's e& concludes acquisition of majority stake in Careem Technologies (8 December 2023)