(Reuters) - Ober Technologies will announce plans this week to acquire rival Dubai-based Karim Networks, Bloomberg reported on Sunday, citing informed sources.
According to the terms of a contract Bloomberg said it had seen, Ober would pay $ 1.4 billion in cash and $ 1.7 billion in convertible paper at Ober at $ 55 per share.
Ober is preparing for an initial public offering, and bankers who manage the offering say the company's value could be as high as $ 120 billion.
Ober has chosen the New York Stock Exchange to float its shares, and the IPO is expected to be one of the top five offerings on the New York Stock Exchange at all.
The two companies provide smart delivery and transportation services over mobile applications, and vary in the provision of additional services, such as delivery of food and goods to passengers.
Based in Dubai, Karim has been operating in the Middle East since 2012, expanding to 15 countries and more than 90 cities, employing 30 million subscribers and employing 1 million drivers, while the market value is $ 2 billion, according to the company.
OBER, a multinational, operates in more than 70 countries, provides mobility services to individuals and promotes development through self-driving and air transport technology in urban areas, helping people to order food, providing the necessary healthcare, and creating new cargo booking solutions.