Ukrainian ISP Datagroup has reached an agreement to acquire 100% of its rival operator Volia. The transaction has been spearheaded by Horizon Capital’s EEGF II fund. Long-term shareholder EEGF II is the majority owner of Datagroup and raised its stake to 96.13% in November 2020. CEO Mykhailo Shelemba holds the remaining 3.87% of the company’s shares. The transaction – which was announced on 22 December – is subject to customary regulatory approvals.
Mr Shelemba commented: ‘I look forward to this new, exciting chapter in the company’s development. The fixed broadband market in Ukraine is extremely fragmented with over 5,000 ISPs operating in the country. This large fragmentation does not allow most players to maintain high investment levels necessary to continuously introduce new technologies for their customers, which is critical in this modern, digital world … Each company focuses on different customer segments – Datagroup is the leader in B2B segment with only 15% of its revenues generated by B2C, while Volia is the leader in the B2C segment with less than 5% of its revenues generated by B2B customers.’