UAE telecoms and technology company e& has completed the acquisition of a 50.03 per cent stake in Careem Technologies, commonly known as Careem Everything App, for $400 million, the conglomerate said on Friday.
E& signed the deal in April to purchase a majority stake in Careem Everything App, which is a new entity created by carving out the non-rideshare businesses from Careem. The app will operate alongside Careem’s rideshare business, which is fully owned by the US ride share firm Uber.
The capital will be invested to “grow the business”, e& said in a statement on Friday to the Abu Dhabi Securities Exchange, where its shares are traded.
“This investment is in line with e&’s strategic ambition of scaling up its consumer digital offering and accelerating its transformation to a global technology group,” e& said.
The deal will allow e& to tap into multiple digital services, access talented professionals and expand its reach across different geographies, it said.
The transaction is financed through debt and the financials of Careem Everything App will be consolidated into e&’s financials this month, according to the bourse filing.
In October, e&, formerly known as the Etisalat Group, reported that its net profit jumped 20 per cent in the third quarter to $816 million as its subscriber base grew.
The company is currently in the process of expanding its footprint and has been on an acquisition spree.
This is part of a broader shift in the telecoms industry, where companies are incorporating new technology into their operations to grow their customer bases and introduce additional sources of revenue.
The Abu Dhabi company has also increased its stake in Vodafone Group to 14 per cent as it continues to consolidate its shareholding in the British company as part of its international expansion plans.
In July, e& said it was considering acquiring a stake in Ethiopia's Ethio Telecom, which would potentially boost its international portfolio. That would potentially give e& access to 25 other countries across Europe, North America, Asia and Africa.
Careem, which operates in 10 countries across the Middle East, Africa and South Asia, also offers a range of digital products and services. Its app provides food and grocery delivery, FinTech services through Careem Pay, micro-mobility through Careem Bike and various third-party services.
