Paris, France      

Transaction Concluded

A consortium led by NJJ Holding (“NJJ”), the investment firm owned by Xavier Niel, the founder of leading European telecom group Iliad, today announced that they have acquired both Datagroup-Volia, Ukraine’s leading fixed telecom and pay TV provider, and Lifecell, the country’s third largest and fastest-growing mobile operator. The transaction closed following fulfilment of conditions precedent, including all required regulatory approvals.

The consortium, including U.S. private equity firm Horizon Capital, led by Lenna Koszarny, and CEO Mykhaylo Shelemba, will merge Datagroup-Volia with Lifecell to create a converged telecom platform for expansion, growth and investment. This historic transaction is the first major investment by a new market entrant and major strategic investor since the full-fledged invasion, further supporting the growth and modernization of Ukraine’s telecom infrastructure.

Strategic Investments and Financing

The next significant milestone for the combined platform is signing loan documents then disbursing the $435 million joint financing package provided by the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC). Both institutions have received required Board approvals following announcement of this deal at the Ukraine Recovery Conference in Berlin in June 2024. NJJ, Horizon Capital and Mykhaylo Shelemba look forward to this long-term partnership with EBRD and IFC which will enable the launch of a significant investment program, including investments in network, licenses, equipment and expansion of fixed and mobile infrastructure in Ukraine.

Leadership and Vision

Kyiv-based Mykhaylo Shelemba, the current CEO of Datagroup-Volia, will lead Lifecell-Datagroup-Volia Group as its CEO. Paris-based Pierre Danon, will continue to serve as non-executive Chairman of the Supervisory Board, for the merged entity. The combined platform will provide mobile connectivity to nearly 10 million Ukrainians, while its fixed network will cover more than 4 million residences across the country.

Future integration will enable the platform to offer a triple-play service, combining mobile, fixed connectivity, and pay-TV, enhancing service quality, pricing, and the integration of European standards.

Xavier Niel, Founder of NJJ Holding, commented: “I am pleased to announce the completion of this landmark French investment in Ukraine’s telecom sector, which we believe will provide significant and tangible benefits to customers, the market, and to the country. The closing of this landmark transaction will serve as a signal to others that Ukraine offers compelling opportunities, and that the time to invest is now.  We welcome CEO Mykhaylo Shelemba to our team of esteemed CEOs leading NJJ’s telecom ventures around the globe. We are pleased to deepen our cooperation with Horizon Capital in their capacity as our minority partner in Ukraine, and to our long-term financial partnership with institutions EBRD and IFC.”

Lenna Koszarny, Founding Partner and CEO of Horizon Capital, added: “It is a distinct honor and enormous pleasure to close this historic transaction with Xavier Niel and his world-class team at NJJ.  We sought, and succeeded, in attracting a truly visionary strategic investor for Ukraine, who would further develop and expand upon the successful Datagroup-Volia and Lifecell platforms. We look forward to continuing in this exciting journey for many years to come, alongside NJJ as their partner in Ukraine, and to joining forces with our valued investors EBRD and IFC on this deal. We congratulate CEO Mykhaylo Shelemba on his well-deserved, expanded role that will further showcase his strong leadership and solid business acumen. We are confident that this transaction will mark a new era of investments in Ukraine’s tech and infrastructure sectors, further driving resilience and growth.”

Mikhail Shelemba, CEO of Datagroup-Volia, stated: “Closing this deal now paves the way for the merger of Datagroup-Volia and Lifecell to create a new champion in Ukraine’s telecom sector, combining two stellar assets with vast synergy potential. The expansion of the triple-play offering is expected to result in clear, tangible benefits for consumers in terms of convenience, cost and quality of service. Mutual integration of customer bases, improvements in cost-efficiency and business processes, as well as strengthening of network investment will allow us to offer even more attractive and competitive packages to our subscribers than what could be provided on a standalone basis. This opportunity is only made possible through the bravery of Ukraine’s courageous defenders, who are protecting the country at this critical time, and the over 5,000 talented and dedicated management team and employees of Datagroup-Volia and Lifecell, who have demonstrated the utmost resilience and commitment to continuing to deliver high-quality services to Ukrainians every day, despite challenging circumstances. I thank Horizon Capital for their vision, trust and backing as majority shareholder of Datagroup-Volia, and look forward to embarking on Datagroup-Volia-Lifecell’s new, exciting chapter led by NJJ and Xavier Niel, one of the most visionary, experienced and trailblazing telecom investors globally.”

CMS acted as lead transaction counsel on this acquisition and KPMG as tax and financial advisor, to the Purchaser consortium. Avellum represented all parties as competition and anti-trust counsel, while DWF acted as legal counsel, and Kinstellar as Ukrainian legal counsel, to NJJ. Lazard acted as financial advisor to Horizon Capital and Mykhaylo Shelemba.

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About NJJ Holding

NJJ Holding is the personal investment vehicle of Xavier Niel, a recognized entrepreneur and major long-term investor in the telecoms sector across the world. Xavier Niel is also the owner of Iliad – a telecommunications holding founded in 1991, which revolutionized the telecom market in France, ensuring that French consumers enjoy low broadband rates in the developed world with its “Freebox”. In 2012, he launched Free Mobile offering no-strings-attached SIM card services. Iliad now being a leading telecoms provider present in France, Italy and Poland. Overall, Xavier Niel has telecoms investments in more than 20 countries across the world, delivering mobile services to over a hundred million subscribers.

About Horizon Capital

Horizon Capital is the leading private equity firm in Emerging Europe with $1.6 billion in assets under management, from investors with a capital base of over $700 billion, raising over $800 million in growth capital in six years, including its latest fund, $350 million Horizon Capital Growth Fund IV, L.P. The firm’s investment strategy focuses on backing visionary entrepreneurs leading fast-growing, primarily tech and export-oriented businesses, in Ukraine and Moldova.

About Datagroup – Volia

Datagroup and Volia is the national fixed line leader across key customer segments – B2C, B2B, and wholesale. The Company’s network covers over 4 million Ukrainian households in more than 100 cities, with over 35,000 kilometers of fiber infrastructure making it one of the largest networks in the country. The Company also offers a broad portfolio of value-add services to its clients, including cloud and cybersecurity for B2B customers, and IoT and OTT solutions for retail customers. With more than 2,000 institutional clients, the group is also a key partner of the public sector, collaborating with state bodies and agencies in the fields of finance, defense, and communications.