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IT infrastructure provider Selectel has closed a deal to acquire 100% of the shares in Stek Group, known in the market under the M1Cloud brand. The transaction value amounted to no more than 2.6 billion rubles (approximately $26.5 million).
M1Cloud has been operating in the virtual IT infrastructure and cloud services market from Moscow-based data centers for over 15 years. The provider's portfolio includes partnerships with more than 170 mid-sized and large enterprises. M1Cloud's projected revenue for the full year 2026 is expected to reach 1.5 billion rubles (approximately $15.3 million).
Business as Usual, But with New Resources
Under the terms of the agreement, M1Cloud services will continue to operate in standard mode, and the conditions of existing contracts for current clients will remain unchanged. This is a classic M&A maneuver: promising that nothing will change, except that clients will supposedly gain access to a new layer of Selectel's infrastructure resources and expertise. How smoothly this integration will play out in practice remains to be seen.
Appetite, as they say, comes with growing revenue. According to financial reports, in the first half of 2026, Selectel increased its revenue by 14% year-over-year, reaching 10.2 billion rubles (approximately $104 million). At the same time, the adjusted EBITDA margin stood at a robust 53%, and the client base at the end of the reporting period totaled 44.5 thousand companies. The acquisition of M1Cloud fits logically into the strategy of strengthening positions in the private cloud segment, where competition demands not only technical capacity but also ready-made client portfolios.