The U.S. ride-hailing giant Uber Technologies Inc. is set to announce acquiring Middle East rival Careem in a $3.1 billion cash-and-share deal.

Uber is set to pay a whopping 1.4 billion in cash and 1.7 billion in convertible notes for Careem, according to people with knowledge of the matter. According to the term-sheet seen by Bloomberg, the notes will be convertible into Uber shares at a price equal to $55 per share.

Uber is expected to file for an IPO in April, starting a listing that could value the company at as much as $120 billion.

The CEO of STV, Abdulrahman Tarabzouni, said in a statement, "Careem is a true pioneer in the MENA technology industry and this transaction is testament to its rapid growth and the massive digital demand in this region. From the very start, Careem’s co-founders understood the local needs of this young and dynamic population, tapping into a tech-savvy and early adopter customer base."

"This deal with Uber, a leading global technology player, will help Careem expand its customer base even further and continue to develop the regional economy. It also sends a strong message that this part of the world can deliver on its digital potential and create significant value," said Abdulrahman.

Saudi Prince Alwaleed bin Talal’s investment firm and Japanese e-commerce company Rakuten, among other shareholders in Careem, have been asked to agree to the terms of the transaction by Monday evening, as a deal could be announced Tuesday.

Uber’s acquisition of Careem could be one of the New York Stock Exchange’s biggest-ever listings. This would signal Uber’s commitment to the Middle East, where one of its biggest investors is based, a Saudi Arabian sovereign wealth fund.