Kyivstar Group Ltd. (Nasdaq: KYIV; KYIVW), part of the international telecommunications group VEON, has announced the signing of an agreement to acquire GigaCloud, one of Ukraine’s largest cloud services providers. The total transaction value could reach $50 million, equivalent to approximately UAH 2.28 billion.
The company announced the agreement on October 28, 2026.
The transaction structure includes a base purchase price of $41 million, up to $4 million in deferred debt obligations, approximately $3 million in additional payments contingent on achieving specified financial and operational targets, and up to $2 million in capital expenditure (CAPEX) reimbursement.
As a result, approximately $5 million of the total transaction value is linked to GigaCloud’s future performance and the implementation of investment projects.
The acquisition will enable Kyivstar to strengthen its position in the enterprise cloud services market by combining its telecommunications infrastructure, customer base, and investment capabilities with GigaCloud’s technological expertise.
The companies plan to focus particularly on developing secure cloud infrastructure, cybersecurity solutions, and artificial intelligence-powered services for Ukrainian businesses and government institutions.
Why the GigaCloud Acquisition Took More Than a Year
Kyivstar’s plans to acquire GigaCloud first became public in September 2025. As previously reported by InVenture, the telecommunications operator had submitted an application to the Antimonopoly Committee of Ukraine (AMCU) seeking approval to acquire control of the cloud services provider. According to preliminary media reports, the proposed transaction involved the acquisition of an 80% stake in the company.
However, the regulatory approval process proved more time-consuming than initially expected.
The first application, submitted on September 19, 2025, was rejected by the AMCU on October 3 due to non-compliance with the established documentation requirements. Kyivstar resubmitted its application on October 24, and on January 9, 2026, the Committee launched an in-depth investigation into the proposed concentration.
One of the key reasons for the prolonged regulatory review was concern about potential competition risks in the cloud services market. The AMCU examined whether combining one of Ukraine’s largest telecommunications operators with a leading cloud services provider could create unjustified competitive advantages over other market participants.
In particular, the regulator assessed the risk of bundling GigaCloud’s cloud services with Kyivstar’s mobile and fixed-line telecommunications services.
It was not until July 9, 2026, that the AMCU granted final approval for the concentration, subject to a number of behavioral commitments.
Under the regulator’s decision, Kyivstar committed to ensuring that customers could access GigaCloud’s cloud services regardless of their chosen internet service provider, refraining from imposing additional telecommunications services on customers, and offering cloud solutions as standalone commercial products.
The AMCU will monitor compliance with these requirements, including through annual reporting by the operator.
Consequently, more than 13 months elapsed between the first reports of the planned acquisition and the official signing of the agreement. Moreover, more than three additional months passed between the AMCU’s approval in July and the announcement of the signed agreement. The companies have not publicly explained the reasons for this additional delay.
At the same time, signing the agreement does not mean that the acquisition has been completed. The transaction will close once the conditions stipulated in the agreement have been satisfied.
GigaCloud’s Financial Performance
GigaCloud has operated in the Ukrainian market since 2016 and serves more than 1,800 corporate customers. The company specializes in cloud infrastructure, data storage, and data processing, with infrastructure located in Ukraine and Poland.
According to unaudited management accounts, GigaCloud reported the following financial results for 2025:
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Revenue — approximately $14 million.
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EBITDA — approximately $4.7 million.
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EBITDA margin — approximately 34%.
Based on the maximum announced transaction value and GigaCloud’s 2025 EBITDA, the implied transaction value-to-EBITDA multiple is approximately 10.6x. However, the actual acquisition multiple will depend on the final transaction structure and whether the conditions for additional payments are met.
What Will Change Following the Acquisition
Following completion of the transaction, GigaCloud will continue operating as a separate business unit within Kyivstar Group Ltd., retaining its brand and management team.
GigaCloud’s founders are expected to remain involved in managing the business. No changes are anticipated to existing customer contracts, service levels, or commercial terms.
Oleksandr Komarov, President of Kyivstar Group Ltd., noted that the acquisition would bring together GigaCloud’s technological capabilities with the scale of Kyivstar’s telecommunications business and investment resources, accelerating the development of enterprise digital services.
Nazariy Kurochko, CEO and co-founder of GigaCloud, emphasized that the partnership would create opportunities to accelerate investment in cloud infrastructure and expand the company’s market presence.
The acquisition of GigaCloud represents a further step in Kyivstar Group’s strategy to diversify beyond traditional telecommunications services and develop its digital ecosystem, which already includes digital healthcare, online services, and enterprise technology solutions.
