Information on the target
Kyivstar Group Ltd. (Nasdaq: KYIV; KYIVW), a leading digital operator in Ukraine and part of the VEON Group (Nasdaq: VEON), has announced the acquisition of GigaCloud, one of the foremost providers of cloud infrastructure in Ukraine. The total value of the transaction is up to 2,276,900,000 UAH (approximately 50 million USD). This investment enhances Kyivstar's technological capabilities for the corporate sector by integrating communication services, cloud infrastructure, and cybersecurity solutions, thereby aiding businesses and government institutions in accelerating their digital transformation.
Founded in 2016, GigaCloud serves over 1,800 corporate clients and boasts a robust expertise in cloud technologies, with infrastructure located in both Ukraine and Poland. The deal not only strengthens Kyivstar's sovereign cloud infrastructure capabilities but also lays the groundwork for the future development of AI-based services tailored to the needs of Ukrainian businesses and government entities. According to unaudited management reports, GigaCloud generated approximately 14 million USD in revenue and 4.7 million USD in EBITDA in 2025, reflecting an EBITDA margin of around 34%.
Industry overview in the target’s specific country
The Cloud Computing Services industry in Ukraine has experienced significant growth in recent years, driven by the increasing demand for digital transformation across various sectors. As businesses seek to enhance operational efficiency and reduce costs, cloud solutions have become essential for enabling remote work, data storage, and application hosting. The Ukrainian government has also recognized the importance of cloud computing in fostering innovation and has implemented policies to support the development of this sector.
Ukraine's strategic geographic location and its well-educated workforce provide a solid foundation for the growth of cloud services. Local providers like GigaCloud have emerged as key players, offering tailored solutions that meet the specific needs of Ukrainian businesses. The increasing adoption of cloud technologies is further supported by the rise of e-commerce, digital banking, and online services, which have accelerated the demand for reliable and secure cloud infrastructure.
Moreover, the ongoing geopolitical challenges have heightened the need for sovereign cloud solutions, as organizations prioritize data security and compliance with local regulations. This trend has led to a surge in investments in cloud infrastructure, with companies looking to establish secure and resilient systems that can withstand external threats. As a result, the Ukrainian cloud computing market is poised for continued expansion, presenting significant opportunities for both local and international investors.
The rationale behind the deal The acquisition of GigaCloud aligns with Kyivstar's strategic vision to enhance its digital service offerings and invest in critical technological infrastructure. By integrating GigaCloud's established cloud business and expertise with its own tele…