Kyivstar Agrees to Buy GigaCloud in Deal Worth Up to $50 Million
Key Facts
Kyivstar Group announced on October 27, 2026, that it had agreed to acquire Ukrainian cloud infrastructure provider GigaCloud in a deal worth up to $50 million. The company said the transaction expands its enterprise technology offerings by combining connectivity, cloud infrastructure and cybersecurity services. Kyivstar expects the deal to be immediately accretive to earnings and cash flow. It also gives the company a platform to develop AI services for businesses and public institutions. The announcement places the deal within the company’s efforts to expand its digital services for businesses, according to its statement.
The consideration includes a base acquisition price of $41 million, plus up to $4 million in non-adjustable deferred debt obligations. It also includes about $3 million tied to performance and up to $2 million as compensation for capital expenditures. The total announced value therefore reaches $50 million when the maximum additional and estimated components are included. The base price is distinct from these components, some of which depend on performance or are linked to compensation for capital expenditures. Completion remains subject to customary closing conditions.
Founded in 2016, GigaCloud serves more than 1,800 business customers and has infrastructure across Ukraine and Poland. According to unaudited management accounts cited by Kyivstar, the company generated about $14 million in revenue in 2025. Its earnings before interest, taxes, depreciation and amortization were $4.7 million that year, with a margin of about 34%. These figures provide an indication of the scale of the business Kyivstar will bring into the group, while the reported performance data remains unaudited. Kyivstar says the deal expands its ability to provide sovereign cloud services to enterprise customers.
The deal comes as digital activities account for a growing share of Kyivstar’s business. Group revenue rose 19.3% year over year to $339 million in the second quarter of 2026, while digital revenue increased 83% to $73.7 million, equal to 21.7% of the total. The company previously said digital revenue in 2025 reached $124 million after growing 4.7-fold, and represented 15.7% of total fourth-quarter revenue. These figures reflect the growing weight of digital activities in group revenue over the periods cited. Chief Executive Oleksandr Komarov said customers that rely on more of the company’s services “generate higher revenue, stay with us longer and strengthen our ability to generate cash.”
In its second-quarter results, Kyivstar reported that cash and cash equivalents and deposits totaled $364 million as of June 30, 2026. The company raised its 2026 dollar revenue growth forecast to a range of 14%–16%, and its forecast for earnings before interest, taxes, depreciation and amortization growth to 9%–12%. The deal links the group’s existing connectivity base with cloud infrastructure and cybersecurity, with the offerings aimed at businesses and public institutions. After completion, GigaCloud is expected to operate as an independent unit within the group while retaining its brand and management team. Its founders will continue to lead the business, and the companies do not plan to change existing customer contracts, service levels or commercial terms.
Kyivstar is scheduled to release its third-quarter 2026 results on November 6, the next announced date for an update on the group’s performance. The results announcement follows a deal the company said would immediately support earnings and cash flow. The results will also provide a regular update on the group’s business amid the rise in digital revenue in the second quarter. The company announced the reporting date on its official announcements page. The results-date announcement provided no further details on the acquisition’s impact before closing.