Kyivstar Group’s planned purchase of Ukrainian cloud provider GigaCloud for up to $50 million would broaden its business-services reach, with regulatory conditions requiring customers to retain choice over internet access.
Kyivstar, part of VEON Ltd., announced on Oct. 27 that it had signed the agreement. The acquisition has not closed and remains subject to customary closing conditions. Ukraine’s Antimonopoly Committee of Ukraine (AMCU) approved the change in control on July 9, subject to commitments governing how the cloud services are sold.
Kyivstar valued the proposed transaction at up to $50 million. It cited a $41 million acquisition price, up to $4 million in deferred non-adjustable debt, about $3 million in performance-related consideration and up to $2 million to reimburse capital expenditures. The company said about $5 million is linked to future performance and investment milestones.
Under the AMCU’s conditions, customers must be able to use GigaCloud services with any internet provider and buy the cloud offering separately. Kyivstar also cannot make cloud access conditional on purchasing its other services. The committee said providers with a narrower range of telecom and digital services could face a competitive disadvantage if cloud offerings were bundled with those services.
Founded in 2016, GigaCloud operates infrastructure in Ukraine and Poland. It had more than 1,800 enterprise customers as of Kyivstar’s Oct. 27 announcement. Kyivstar reported about $14 million in GigaCloud revenue and $4.7 million in earnings before interest, taxes, depreciation and amortization (EBITDA) for 2025, an EBITDA margin of about 34%. The figures are based on preliminary, unaudited management accounts, the company said.
Kyivstar expects GigaCloud’s founders to keep leading the business after closing, with its current brand and management team. It says existing customer contracts, service levels and commercial terms are not expected to change. Kyivstar plans to pair GigaCloud’s infrastructure with its connectivity and cybersecurity services and explore AI-enabled offerings for businesses and public institutions. The company plans to report third-quarter and nine-month 2026 results on Nov. 6.
