Kyivstar and Uklon officially closed a deal to buy the online car ordering business
Kyivstar, the largest national operator of electronic communications, and Uklon, the product IT company and developer of the online platform and application for ordering cars, have successfully closed the deal to purchase 97% of Uklon’s corporate rights. The deal amount was USD 155.2 million.
After the deal closes, Kyivstar and Uklon remain separate businesses, and the company’s team, led by Uklon CEO Serhii Hryshkov, will continue to work on the development of the Company’s products and services in Ukraine and other markets. 3% of Uklon’s corporate rights remain owned by Vitalii Diatlenko, one of the Company’s co-founders.
“The agreement with Uklon is an important strategic step for Kyivstar towards creating a modern digital operator. We rely on the talented team and promising business of Uklon, which has already proven its effectiveness in the market. Our goal as a strategic investor is to develop existing online car ordering and delivery services, introduce new solutions and services, and enter international markets, strengthening the competitive advantages of both companies.”, – comments Oleksandr Komarov, CEO of Kyivstar.
“A week ago, Uklon celebrated the 15th anniversary of its first order and its foundation. Now Uklon is not only the market leader in Ukraine, but also an integral part of the success story of the Ukrainian technology business. Speaking on behalf of all the co-founders of the Company, we are very pleased that Uklon will continue its development with a new powerful strategic investor – Kyivstar – we are confident that this will mutually strengthen the position of the companies and help Uklon reach a new level both in Ukraine and abroad.”, – noted Dmytro Dubrovskyi, co-founder of Uklon.
Uklon’s corporate governance will be carried out by the Supervisory Board, led by Oleksandr Komarov, CEO of Kyivstar. The governing body will include representatives of both companies, in particular, Zoia Dronshkevych, Kyivstar Business Development Director, Borys Dolhushyn, Kyivstar CFO, and Uklon co-founders Serhii Smus and Vitalii Diatlenko.
“This is an outstanding event for our Company and the entire Ukrainian business. Our team is pleased to complement the digital ecosystem of Kyivstar and Veon Group with its unique expertise, innovation and dynamic driving culture. I am confident that the positive effect of technological and product synergy, additional investments and competencies of our teams will allow Uklon to successfully implement further ambitious development plans in Ukraine and new markets.”, – added Serhii Hryshkov, CEO of Uklon.
Under the terms of the agreement, Kyivstar made a payment in UAH, from which all taxes on the funds received in the amount of 23% (including the military fee) will be paid to the State budget of Ukraine. At the same time, part of the funds received in the amount of 12% will be paid to members of the Uklon team who were participants in the Company’s motivational program.
During the implementation of the deal, Sayenko Kharenko law firm acted as legal advisers, and KPMG Ukraine acted as financial consultants to Kyivstar. Imagine Lawyers law firm accompanied Uklon as legal adviser on the transactional part of the deal, and the law firm Asters on issues of Ukrainian competition law, in particular the preparation of a package of documents for the Antimonopoly Committee of Ukraine. Dragon Capital Investment Company has provided exclusive financial support from Uklon.
