Kyivstar, Ukraine’s largest mobile operator, is considering the acquisition of around 10 companies as part of an ambitious expansion strategy aimed at deepening its position in Ukraine’s digital services market, the company said this week.
The potential acquisitions come as Kyivstar, which serves over 24 million mobile subscribers, looks to broaden its offerings beyond traditional telecommunications. The targets include companies in the fields of cloud services, cybersecurity, digital health, entertainment, and data analytics.
“We are currently considering about ten companies that may become a synergistic part of our business,” said Kyivstar President Oleksandr Komarov, Ukrainian Business News reported on January 5. He added that the goal is to “develop digital ecosystems for individuals and businesses” in Ukraine.
The move is part of Kyivstar’s wider transformation into a digital services provider, a shift accelerated by wartime demands for resilient communications infrastructure and remote access tools. “The war has sharply increased the demand for digitalisation,” Komarov said.
Kyivstar is owned by Amsterdam-based VEON Ltd., which announced its full exit from the Russian market in 2023 to focus on core growth areas, including Ukraine. VEON has pledged over $600mn in investment in Kyivstar between 2023 and 2027, including the rebuilding of mobile networks damaged during the war, rollout of 4G in underserved regions, and expansion into cloud and digital services.
The strategy also includes Kyivstar Health, a digital healthcare platform launched in 2023, and a partnership with Microsoft to offer cloud services hosted in Ukraine.
Despite sustained damage to Ukraine’s telecom infrastructure from Russian missile and drone strikes, Kyivstar reported continued service delivery across most of the country. In December 2023, however, the company experienced one of the largest cyberattacks in Ukrainian history, temporarily disabling mobile and internet services for millions.
Kyivstar said the attack had no lasting effect on its strategic plans. "This was a serious incident, but it only reinforces our commitment to strengthening Ukraine’s digital resilience," Komarov stated.
The company’s acquisition plans reflect a broader trend among Ukrainian firms seeking to localise and fortify critical digital services amid ongoing conflict. Komarov said the company would prioritise businesses with “technological potential and the ability to scale”.
VEON said in a statement it supports Kyivstar’s expansion efforts and sees Ukraine as a key market for innovation. The group is listed on Nasdaq and Euronext Amsterdam and is undergoing its own post-Russia strategic refocusing.
"Ukraine remains at the centre of our strategic priorities,” said VEON CEO Kaan Terzioğlu in November. “We believe in Ukraine’s digital future.”
