The US shared travel company Uber Technologies will offer more than 3 billion USD to acquire its Dubai-based rival Careem Networks FZ. The Uber offer will be announced later this week. Uber will pay 1.4 billion USD in cash and 1.7 billion USD in convertible debt, which will be converted into securities at 55 USD per share.

Careem is a transportation network company based in Dubai, with operations in over 100 cities in 14 countries in the Middle East, Africa, and South Asia. The company is valued at over 2 billion USD as of 2018. Careem has raised funding of 421.7 million USD to date.

Uber prepares for an initial public offering (IPO), and the bankers expect its market value to reach 120 billion USD.

The US-based transport and logistics company is looking for new areas of growth, although it faces huge competition from its core business against rivals like Lyft.

The IPOs of Lyft and Uber are key to the technology unicorns, worth more than 1 billion USD, from Silicon Valley.