Ober Intelligent Transportation Company announced today its acquisition of its Middle East rival Karim for $ 3.1 billion in a deal expected to close by the first quarter of 2020.
The deal will provide $ 1.4 billion in cash to Karim shareholders and $ 1.7 billion in convertible securities, the US multinational company said in a statement.
Under the agreement, Karim, which operates in the Middle East, will become wholly owned and operated by Ober, an independent company under the Karim brand, led by Karim's founders.
According to Ober, the deal represents an opportunity for the two companies to expand and benefit quickly from the incomplete mobility opportunity in the region and the growing digital economy.
The two companies offer smart delivery and transportation services through mobile applications and vary in the provision of additional services, such as delivery of food and goods to passengers.
Auburn, a US multinational company founded in 2010, aims to find push-button solutions, implemented more than 10 billion flights, and operates in more than 70 countries.
Established in 2012 in the Middle East, Karim has grown to include 15 countries and more than 90 cities. It is used by 30 million subscribers and employs 1 million drivers, while the market value is $ 2 billion.