Uber Technologies Inc. [NYSE: UBER] confirmed its deal to acquire Postmates Inc. on Monday for $2.56 billion in stock. Earlier, the news that Uber has decided to acquire Postmates was circulating on the internet. Today Uber confirmed the news that it has struck deal with Postmates Inc.
Like other transportation businesses, the ride hailing business of Uber Inc has also affected because of stay-at-home orders. But the demand of food delivery at home increased. According to Uber’s last earning report, its ride hailing business gross bookings decreased but its food delivery business saw a surge.
Uber disclosed that it will issue approx. 84 million shares of its common stock, representing approx. 4.8% of the shares outstanding, which includes 100% of Postmate’s equity. The deal is expected to close in the first quarter of 2021. Uber disclosed that it has decided to run a Postmates app separately from its food delivery app Uber Eats.
Shares of UBER exhibited a change of +0.25 and showed a percentage change of 0.82%. It has day low and day high range of 30.51-31.57, respectively. Its trading volume reached upto the 14.98 million as compared to the average volume of 29.48 million.
In the past 52-weeks of trading Uber Technologies Inc. has ocillated between a low of $13.71 and a peak of $45.63. It has moved up 123.78% from its 52-weeks low and decreased -32.76% from its 52-weeks high.