Kyivstar Group Ltd. (Nasdaq: KYIV; KYIVW), Ukraine's leading digital operator and part of the international VEON group, has announced the signing of an agreement to acquire GigaCloud, one of the largest cloud infrastructure providers in the Ukrainian market. The total value of the transaction is up to 2.2769 billion Ukrainian hryvnias (up to 50 million US dollars). According to Inventure magazine, preparing the deal took over a year and required approval from the Anti-Monopoly Committee of Ukraine. The investment aims to expand the operator's technological capabilities in the corporate segment: Kyivstar is combining communication services, cloud infrastructure, and cybersecurity solutions to help businesses and government institutions accelerate digital transformation.
Structure and Financial Terms of the Transaction
According to the disclosed terms, the acquisition structure includes $41 million in base value, up to $4 million in deferred debt obligations, approximately $3 million in payments tied to the achievement of agreed performance metrics, and up to $2 million in capital expenditure (CAPEX) compensation. Thus, about $5 million of the total transaction amount depends on GigaCloud's future operational results and the implementation of specific investment projects. The transaction will close upon fulfillment of standard closing conditions typical for such corporate acquisitions. The company stated that the valuation takes into account GigaCloud's growth rates, its expertise in cloud technologies, leading market position, and the expected synergistic effect of combining the businesses.
GigaCloud: Business Metrics and Client Base
GigaCloud was founded in 2016 and, at the time of the announcement, serves over 1,800 corporate clients. According to unaudited management reporting, in 2025 the company generated about $14 million in revenue and $4.7 million in EBITDA, which corresponds to an EBITDA margin of approximately 34%. The provider's infrastructure is located in Ukraine and Poland, providing clients with access to a distributed cloud platform. GigaCloud complements Kyivstar's portfolio with a broad corporate client base, deep expertise in cloud technologies, and its own R&D competencies.
Sovereign Cloud, Cybersecurity, and AI
The agreement strengthens Kyivstar's position in sovereign cloud infrastructure and establishes a foundation for developing artificial intelligence-based services tailored to the needs of Ukrainian businesses and government agencies. Kyivstar Group President Oleksandr Komarov emphasized that GigaCloud brings to the group “an established cloud business, deep expertise in cloud technologies, robust R&D competencies, and an experienced team.” He noted that combining these resources with Kyivstar's telecom infrastructure, client scale, and investment capabilities will help modernize operations for more companies and develop technology business for the corporate segment. Komarov also stated that the acquisition is “an important step in implementing the digital strategy” and will contribute to developing the infrastructure Ukraine needs in the long term.
The Future of GigaCloud within Kyivstar
Upon completion of the transaction, GigaCloud will continue to operate as a separate business unit within Kyivstar Group Ltd., retaining its own brand and management team. The company's founders are expected to continue managing the business. The transaction will not result in any changes to existing client contracts, service levels, or commercial terms. GigaCloud CEO and co-founder Nazarii Kurochko stated that the company “is built on client trust and team expertise,” and the partnership with Kyivstar will accelerate infrastructure investments and expand market presence. GigaCloud co-founder Anton Khvastunov added that amid growing demand for sovereign cloud solutions, the partnership strengthens capabilities to scale secure cloud services and contribute to Ukraine's digital development.
Context: Focus on Digital Infrastructure
The acquisition of GigaCloud is a continuation of Kyivstar Group's strategic course toward developing digital services and investing in critical technological infrastructure. Previously, the company signed a definitive agreement and completed the acquisition of 100% of the shares of the online platform Tabletki.ua, confirming the consistent expansion of its digital portfolio beyond traditional telecommunication services. Experts note that amid heightened demand for secure and sovereign cloud solutions from businesses and the public sector, such transactions are becoming a key instrument for shaping the national digital ecosystem.
