“e& Completes Acquisition of Majority Stake in Careem Technologies”

The acquisition agreement between e&, a UAE-based telecommunications and technology company, and Careem Technologies, known widely as Careem Everything App, has been officially finalized. e& has successfully obtained a majority stake of 50.03% in Careem Technologies for a total of $400 million. The non-rideshare aspects of Careem have been separated to establish a new entity called Careem Everything App, in which e& has now obtained the majority stake. This entity will operate alongside Careem’s rideshare business, which is fully owned by Uber.

e& has confirmed in a statement to the Abu Dhabi Securities Exchange that the capital from the acquisition will be used to facilitate the expansion and growth of the business. This move aligns with e&’s strategic goal of improving its digital consumer offering and accelerating its transformation into a global technology group. The conglomerate has also stated that the transaction will allow it to access various digital services, utilize skilled professionals, and extend its presence across different geographic locations.

The acquisition deal was funded through debt, and the financials of Careem Everything App will now be consolidated into e&’s financials. This transition is set to take place this month, according to the information disclosed in the stock exchange filing.

e&, formerly known as the Etisalat Group, saw a 20% increase in net profit in the third quarter, reaching a substantial $816 million, due to the expansion of its subscriber base. The company has been actively expanding its reach and pursuing a series of acquisitions, including securing a 14% stake in Vodafone Group to strengthen its shareholding in the British company and further its international expansion plans.

The telecommunications industry is currently undergoing a significant transformation, with companies integrating new technology to strengthen their customer base and diversify their revenue streams. e& is also exploring the possibility of acquiring a stake in Ethiopia’s Ethio Telecom, which could potentially provide e& access to an additional 25 countries across Europe, North America, Asia, and Africa.

Careem, which operates in 10 countries across the Middle East, Africa, and South Asia, offers a diverse range of digital products and services. In addition to rideshare services, the company provides food and grocery delivery, FinTech services through Careem Pay, micro-mobility through Careem Bike, and other third-party services.

The successful acquisition of a majority stake in Careem Technologies demonstrates e&’s dedication to strengthening its position in the global technology landscape and expanding its digital capabilities. This strategic move is expected to bring about significant developments in the telecommunications and technology industry, reflecting the ongoing evolution in the sector.