Kyivstar Group Ltd. (Nasdaq: KYIV), the parent company of Ukraine’s largest telecommunications operator Kyivstar, announced the acquisition of GigaCloud, one of Ukraine’s leading cloud infrastructure providers, for nearly 2.28 billion UAH (nearly $50 million) to expand its capabilities in the field of cloud solutions for businesses.
“By combining these strengths with our telecom infrastructure, scale of customer engagement, and investment capabilities, we will be able to help even more companies modernize their operations and develop a more robust technology business for the corporate segment,” Kyivstar Group Ltd. President Oleksandr Komarov is quoted as saying in the press release.
He added that this acquisition will help develop the infrastructure Ukraine needs in the long term.
The transaction is expected to close after the standard closing conditions for such deals are met. GigaCloud will continue to operate as a separate business unit within Kyivstar Group Ltd., retaining its own brand and management team.
Among other things, the company’s founders are expected to continue managing the business.
Furthermore, the transaction is not expected to result in any changes to existing customer contracts, service levels, or commercial terms.
“Together with Kyivstar Group Ltd., we will be able to accelerate investments in infrastructure, expand our market presence, and continue to provide the high-quality services our customers have come to expect,” noted Nazarii Kurochko, CEO and co-founder of GigaCloud, in a press release.
For his part, GigaCloud co-founder Anton Khvastunov emphasized that this collaboration will strengthen the company’s ability to scale secure cloud services and continue contributing to Ukraine’s digital development.
Kyivstar added that this investment will expand the operator’s technological capabilities for the corporate sector, as well as strengthen the company’s future potential in the field of sovereign cloud infrastructure and enable the development of artificial intelligence (AI)-based services tailored to the needs of Ukrainian businesses and government agencies.
It is noted that GigaCloud, founded in 2016, currently serves over 1,800 corporate clients. The company specializes in providing relevant services to businesses. Among the company’s clients are the Kernel agricultural holding, Naftogaz, and others.
The mobile operator’s press release states that, according to unaudited management reports, in 2025 the company generated approximately $14 million in revenue and $4.7 million in EBITDA, corresponding to an EBITDA margin of about 34%.
“The transaction is expected to have a positive impact on the development of Kyivstar Group Ltd. The valuation of the transaction takes into account GigaCloud’s growth rate, its expertise in cloud technologies, its market leadership, and the expected synergies from the business combination,” Kyivstar emphasized.
It is noted that the transaction structure includes a $41 million purchase price, up to $4 million in deferred debt obligations, approximately $3 million in payments tied to the achievement of agreed-upon performance metrics, and up to $2 million in capital expenditure (CAPEX) compensation in accordance with the terms of the agreement.
As reported this past summer, the Antimonopoly Committee of Ukraine authorized Kyivstar PJSC to acquire control over GigaCloud LLC, the cloud provider GigaCloud.
In June 2025, the mobile operator launched its own cloud service for Ukrainian users, Kyivstar Cloud, which is available to small, medium, and large businesses, as well as public sector organizations.
Based on the results of the first half of 2026, Kyivstar increased its revenue by 29.1% compared to the same period in 2025—to 28.9 billion UAH, or by 22.8% in U.S. dollars, to $662 million. Kyivstar’s net profit during this period increased by 36.1% compared to the same period in 2025—to 7.1 billion UAH, or by 28.8% in U.S. dollars, to $162 million.
