Uber Technologies Inc and Russia’s largest online search platform have agreed to combine their ride-hailing business in Russia and a few other Eastern European countries, Bloomberg reported. Shares of Yandex rose nearly 19% on Thursday in New York, its highest in three years, following the announcement.

As per the merger, Uber will invest $225 million (more than Rs 1,400 crore) and take 36.6% stake in the new combined venture. However, Yandex will retain a majority stake at 59.3% with an investment of $100 million (approximately Rs 644 crore). The rest of the stake will be owned by the employees, Reuters reported.

The still unnamed named venture will be valued at $3.73 billion (approximately Rs 24,000 crore). The head of Yandex, Tigran Khudaverdyan, will be the chief executive officer of the new enterprise.

This comes a year after Uber sold its business in China to rival Didi Chuxing in exchange for a 17.5% stake. “This deal is a testament to our exceptional growth in the region and helps Uber continue to build a sustainable global business,” Uber’s chief for Europe, Middle East and Africa, Pierre-Dimitri Gore-Coty, said in the statement.