Kyivstar begins negotiations to acquire Uklon in early 2023, deal to close next week – Kyivstar CEO
Negotiations for the acquisition of the Uklon online taxi service began in early 2023, and the deal is set to be finalized at the beginning of next week, Kyivstar CEO Oleksandr Komarov announced.
"Around the beginning of 2023, we started serious negotiations. They were long and complex – quick deals are not our style. Many consultants were involved," Komarov said at Uklon's 15th-anniversary celebration.
According to him, the final agreement was preceded by a thorough due diligence process and a restructuring of Uklon's businesses.
"This has been a challenging operational process, but it is now coming to a close. The transaction is set to take place next week," Komarov stated.
Earlier, Kyivstar announced the signing of an agreement to acquire 97% of Uklon, with plans to expand the service into new markets with the support of its parent company, VEON. The deal is valued at $155.2 million and is expected to be finalized by April 2025.
For Kyivstar, the investment in Uklon is a logical step in building an integrated digital ecosystem and marks a significant phase of non-organic growth and business expansion, aligning with VEON's $1 billion investment commitment for 2023-2027.
VEON Group CEO Kaan Terzioğlu highlighted that Uklon has achieved one of the best financial performances among ride-hailing services globally, with revenue growing to $60 million over the past four years and an EBITDA margin of 44%. The compound annual growth rate (CAGR) has reached 49% over the last four years.
Uklon operates in 27 Ukrainian cities and within the Bukovel tourist complex, bringing together over 100,000 active driver-partners who collectively fulfill more than 10 million ride requests per month. Since 2023, the company has been expanding internationally, launching its online ride-hailing service in Uzbekistan.
The company is owned by Dmytro Dubrovsky and Viktoria Dubrovska (each holding 38.46%), as well as Vitaliy Diatlenko and Serhiy Smus (each holding 11.54%).