Kyivstar buys cloud provider GigaCloud for $50 million

Kyivstar Group has agreed to buy Ukrainian cloud provider GigaCloud for $50 million, adding EU and Ukrainian cloud capacity to its network and business customers. The companies announced the deal this week; Ukraine's Antimonopoly Committee approved it in July.

The $50 million includes a $41 million acquisition price, up to $4 million in deferred debt, about $3 million in performance-related payments and up to $2 million in capital-expenditure compensation. About $5 million of the transaction value is contingent on future operational milestones and capital spending, the companies said.

For clients, GigaCloud will keep operating as a separate business unit within Kyivstar Group, retaining its own brand and management team, and its founders are expected to continue to lead the business.

GigaCloud runs on colocated capacity: five data centers in the European Union, including Equinix's WA3 in Warsaw, Atman and Talex, plus BeMobile's Kyiv data center and a facility in Lviv.

GigaCloud, founded in 2016, is part of GigaGroup, a telecoms group founded in 2006 that also owns telco GigaTrans, cybersecurity firm GigaSafe and data center operator GigaCenter. It is an OVH partner.

The acquisition comes weeks after a Russian strike hit the Kyiv data center of GigaCloud's parent company. As Private Infrastructure Daily previously reported, the Oct. 20 strike shut GigaCenter's only Kyiv site, a 2014 Tier III facility with room for about 300 racks; GigaCloud said client services continued from backup sites in Ukraine and the EU.