The number of deals in the Ukrainian M&A market increased by 4.2% in the first half of this year compared to the same period of 2023, while the value of deals jumped 31%, KPMG said.
In absolute terms, the number of deals rose to 25 from 24 and the value jumped to $510 million from $390 million at the same time, according to the latest KPMG M&A Radar report. The average deal value, meanwhile, rose to $43 million from
$28 million.
Growth so far this year was driven by the $200 million capital raising in June by Creatio, a Ukrainian developer of no-code CRM and workflow automation platforms, and the $120 million acquisition of Ukrainian telecommunications firm Datagroup-Volia by NJJ Capital, owned by French billionaire Xavier Niel.
Overall, however, the number of inbound deals involved foreign investors dropped to seven in the first half of 2024 from nine in the same period last year as foreigners continued to steer clear of the Ukrainian market amid the ongoing war.
"The overwhelming majority of inbound deals (six out of seven) were in innovation and technology, another continuation of 2023 trends," KPMG said. "The Ukrainian IT sector, with its smaller physical footprint and inherently mobile workforce, has been relatively resilient in the face of wartime conditions and has been able to
adapt to new pressures and challenges with minimal disruption to services."
The inbound deals came mainly from North America, which accounted for $255 million in value in three transactions, followed by Europe, with a value of $155 million in four transactions.
