Over 96% of Datagroup-Volia is owned by a fund managed by US private equity firm Horizon Capital, with the remainder owned by its CEO Mykhaylo Selema. Datagroup-Volia provides fixed telecom and paid TV services to subscribers in Ukraine.
Once the transaction has closed NJJ intends to merge Datagroup-Volia with Lifecell, a Ukrainian mobile network operator. This would take place after regulatory approvals are obtained, resulting in 100% ownership of these Ukraine-domiciled assets.
Post-closing, a fund managed by Horizon Capital and Mykhaylo Shelemba will invest in the combined entity to retain a minority position and be the local partner of NJJ in Ukraine.
The group plans to launch a significant investment program upon the completion of the transaction in Ukraine, with investments in network, licenses, equipment and expansion of fixed and mobile infrastructure.
The combined Datagroup-Volia-Lifecell entity will be led by Shelemba who will assume the role of Group CEO.
The transaction is the first major investment by a new market entrant since the full-fledged invasion of Ukraine by Russia in February 2022.
The combined entity will provide mobile connectivity to nearly 10 million Ukrainians, while its fixed network will cover more than 4 million residences across Ukraine.
“I am pleased that we have achieved this major milestone with the regulatory approval for the acquisition of Datagroup-Volia, a significant step towards the creation of a national Ukrainian telecom champion,” Neil said.
“Ukraine is home to an impressive tech sector with innovation in artificial intelligence, a high degree of digitalization and technological affinity. We are confident that our landmark transaction will serve as a signal to others that the time to invest in Ukraine is now, to support the rebuilding of the country and realize its potential,” he added.
Shelemba said the mutual integration of customer bases, improvements in cost-efficiency and business processes, as well as strengthening of network investment will allow the combined entity to offer even more attractive and competitive packages to its subscribers, compared to what both companies were able to provide on a standalone basis.
