Uber Technologies is set to offer over $3 billion to buy Dubai-based rival Careem Networks FZ, two sources familiar with the deal told Reuters.
Uber’s offer 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 comment.
Uber has been preparing for an initial public offering, and its bankers have indicated that it could be valued at as much as $120 billion.
The US-based global logistics and transportation company has been seeking new avenues of growth even as it faces severe competition in its core business of ride-hailing from rivals like Lyft.
The IPOs of Lyft and Uber represent a watershed for Silicon Valley’s technology unicorns, which for years have snubbed the stock market in favor of raising capital privately, with investors happy to back their frothy valuations.