Kyivstar may acquire Uklon

Ukrainian mobile operator Kyivstar has filed an application with the Antimonopoly Committee of Ukraine (AMCU) to acquire Uklon – including the companies Tech Uklon, Uklon Corporate, Uklon Ukraine and the Cypriot UKLON LTD. The decision on the application is still pending.

For the first time, information about the plans of Kyivstar’s parent company Veon regarding Uklon appeared in September 2024. Uklon co-founder Serhiy Smus noted in December of the same year that the company had received several purchase offers, but none of them met expectations. He estimated the business at 7-8 EBITDA, taking into account the military discount.

According to Forbes Ukraine, the current value of Uklon could be from $40 to $80 million. In the first three quarters of 2024, the company doubled its revenue compared to the same period in 2023, reaching UAH 1.2 billion.

“Kyivstar” is actively diversifying its areas. In 2019, the company opened an R&D; department, which developed products such as the ADWISOR service for targeted SMS mailings. In 2020, the operator invested UAH 555.74 million in the Helsi medical service, and in 2022 launched the Kyivstar.Tech IT company.

The agreement with Uklon is in line with the company’s strategy to go beyond the traditional telecom business and transform into a technology ecosystem.

Why is Kyivstar buying Uklon?

Kyivstar is currently preparing to enter the Nasdaq stock exchange through the SPAC mechanism. The agreement with the American investment company Cohen Circle was signed on January 13, 2025, and the transaction is scheduled to be completed by the second quarter of 2025.

According to experts, the purchase of Uklon will help Kyivstar strengthen its technological profile and present itself as a digital company. Oleksandr Parashchiy, head of the analytical department of Concorde Capital, notes that due to restrictions on paying dividends abroad, the company has significant free capital, which is directed to strategic investments.

The acquisition of Uklon could be an important step in the transformation of Kyivstar into a superapp that combines a wide range of digital services. This will increase the attractiveness of the company for investors, especially in the context of growing interest in technological assets on the global market.

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