Saudi travel and tourism company Al-Tayyar Travel Group has announced it will be divesting its investment in Careem Inc, with an exit value of SR1.78 billion ($474.61 million), in connection with the acquisition of Careem by Uber Technologies Inc, a San Francisco-headquartered transportation network company.
Abdullah Aldawood, CEO of Al-Tayyar Travel Group, said: “This is a historic moment for the Middle East tech space. It is the largest tech deal in the region and a milestone that will provide the stimulus to grow the digital ecosystem and attract more foreign investments.
“As the largest corporate shareholder and one of the earliest investors in Careem, we have always been firm believers in the company and its vision to be an enabler on both the economic and social front — and that is exactly what Careem is today, it has facilitated and improved the lives of millions of people. Getting to this point was the culmination of the hard work, determination and forward-thinking vision of the Careem team and the unwavering support and guidance from us at the group.”
Aldawood said he believes the region is ripe for the development of other tech-enabled travel services and solutions, especially in consumer travel.
“Careem is only one of ATG’s success stories, our online travel platforms have grown from almost SR40 million in 2015 to more than SR2 billion in 2018. We are committed to investing in our technology and platforms to enhance and grow our consumer travel business brands Almosafer and Tajawal. We are also leveraging our technology and data to help ease and enhance the journey for the millions of Muslim pilgrims to the Kingdom and professionalize the service in the Kingdom, with our newly launched Hajj and Umrah business,” he said.
The net proceeds from the sale will be received partly in cash and partly in convertible notes in Uber, which are subject to the satisfaction of terms and conditions. The acquisition of Careem’s business in each country is subject to applicable regulatory approvals. The transaction is expected to close in Q1 2020.
The group first invested in Careem in December 2014 and was one of the early institutional investors in the Middle East, Turkey and Pakistan’s leading ride-hailing service. It has continued to be an active investor supporting the company and its founders. Aldawood has been a member of the board of directors of Careem since December 2014.
Global ride-hailing firm Uber announced this week it will spend $3.1 billion to acquire its Middle East rival Careem, buying dominance in a competitive region ahead of a hotly anticipated initial public offering.
Al-Tayyar Travel exits Careem in $474m deal
Al-Tayyar Travel exits Careem in $474m deal
