Uber Technologies is set to offer over $3 billion to Purchase Dubai-based rival Careem Networks FZ, two sources familiar with the deal told Reuters.
Uber’s provide could be unveiled throughout 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 cost equal to $55 per share, Bloomberg had previously reported, citing a term-sheet.
Careem declined comment while Uber didn’t 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 may be valued at as much as $120 billion.
The US-based international logistics and transportation company has been seeking new avenues of expansion even as it faces intense 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 decades have snubbed the stock exchange in favor of increasing funds privately, with investors happy to back their frothy valuations.