On 27 October, Kyivstar Group signed an agreement to acquire the Ukrainian cloud provider GigaCloud. The total value of the transaction could reach $50 million. Following the completion of the deal, GigaCloud is set to retain its brand, management and current terms of service, whilst the parties plan to develop cloud infrastructure, cybersecurity and AI solutions for businesses and government bodies.
Briefly about the main points
- The base purchase price is $41 million.
- Up to $9 million is earmarked for debt and related payments.
- GigaCloud serves over 1,800 corporate clients.
- The AMCU has laid down conditions designed to safeguard customers’ choice.
- The company has not announced the exact date on which the transaction will be completed.
How the purchase price is determined
The principal purchase price is $41 million. A further $4 million has been set aside to cover GigaCloud’s deferred debt obligations.
Approximately $5 million constitutes the variable component: these payments will depend on the achievement of agreed financial targets and investment plans. It is precisely because of this mechanism that the total value of the transaction may rise to the stated limit.
Profile of a cloud provider and its financial indicators
GigaCloud has been operating in the Ukrainian market since 2016, serves over 1,800 corporate clients and has infrastructure in Ukraine and Poland.
According to preliminary, unaudited financial statements, the company’s revenue in 2025 amounted to approximately $14 million, whilst EBITDA stood at $4.7 million. The EBITDA margin is estimated at approximately 34%.
Which technologies are companies banking on?
Kyivstar The Group plans to combine its own telecommunications infrastructure and investment resources with GigaCloud’s expertise in developing and maintaining cloud platforms.
The planned areas include local cloud infrastructure, cybersecurity services and digital solutions based on artificial intelligence. They are aimed at businesses and government organisations.
The partners intend to work separately to develop opportunities for data hosting and the use of digital services under Ukrainian jurisdiction.
What arrangements have been made for customers, and what conditions has the AMCU set?
Once the transaction is complete, GigaCloud will operate as a separate business unit within the Kyivstar Group. The company is set to retain its name, management team and operational independence; its co-founders are expected to remain in senior management roles.
Kyivstar Group has stated that it has no plans to amend existing contracts, tariffs or terms of service. On 9 July, the Antimonopoly Committee authorised Kyivstar to take control of the provider, subject to a number of conditions.
In particular, the operator may not require GigaCloud customers to subscribe to its telecommunications services. Customers must also be able to use cloud services regardless of their chosen internet service provider.
What procedures remain to be completed before the transaction is finalised?
The signing of the contract does not signify the final completion of the acquisition. The parties still have to complete the legal and financial procedures set out in the agreement.
Approval from the AMCU has already been obtained, although the parties have not specified a closing date. Once the transaction is complete, they plan to increase investment in cloud infrastructure and digital services for the business and public sectors.
