Uber is on the lookout for expanding its areas of business even as its tries to strengthen its core business competency.

According to two sources familiar with the matter at hand, Uber Technologies Inc is likely to offer more than $3 billion for acquiring its Dubai-based rival Careem Networks FZ.

As per a third source, Uber’s offer could surface sometime this week.

As per a Bloomberg report, Uber is willing to pay $1.4 billion in cash and $1.7 billion in convertible notes, which will be convertible into Uber shares at a price equal to $55 per share.

While Careem declined comment, Uber did not immediately respond to a request for comments.

U.S.-based Uber has been preparing for an initial public offering, and its bankers have indicated that it could be valued at as much as $120 billion. The company is on the lookout for new avenues of growth midst fierce competition in its core business of ride hailing from rivals such as Lyft Inc.

The IPOs of both Uber and Lyft represent a watershed moment for Silicon Valley’s tech unicorns, which for years have snubbed the stock market in favor of raising capital privately, with investors happy to back their frothy valuations.