NTT Com acquires 74 percent stake in Netmagic; Nexus exits
The addition of Netmagic Solutions’ data centre services and sites will expand NTT Com’s capability to provide one-stop ICT solutions in the fast-growing Indian market
Japan-based NTT Communications Corporation (NTT Com) will acquire 74 percent of Netmagic Solutions, a provider of data centre services in India.
The acquisition is subject to the approval of relevant authorities in India.
The addition of Netmagic Solutions’ data centre services and sites will expand NTT Com’s capability to provide one-stop ICT solutions in the fast-growing Indian market, as well as accelerate its offering of globally seamless cloud services through expanded ICT infrastructure Asia-wide, said a company release.
“This alliance will help Netmagic to leverage NTT Com’s global network and data centre footprint for customers. The partnership will also help us strengthen our growth plans in the Indian sub-continent and globally, while NTT Com’s global customers in India can benefit from our expertise and leadership position in the managed IT hosting and cloud services market,” said Sharad Sanghi, Founder and CEO of Netmagic Solutions.
The company was founded by Sanghi in1998.One of the earliest investors in Netmagic was eVentures India, a venture fund promoted by Rupert Murdoch.
The acquisition also marks the exit of Nexus Venture Partners. In 2008, Netmagic raised Rs 80 crore from Fidelity International and Nexus. In 2007, Nexus bought a part of eVentures’; portfolio that included including Netmagic.
This is the fifth exit for Nexus in a year and a half. In 2010, it made an exit when Naspers acquired OLX and Salesforce.com acquired Dimdim. In 2011, it moved out of Cloud.com post the acquisition from Citrix and made another exit when open source player Red Hat bought Gluster.
Netmagic Solutions currently operates seven data centres in major Indian cities such as Mumbai, Chennai, Noida (Delhi-NCR) and Bangalore. It provides services such as co-location and managed hosting to more than 1,000 customers, as well as ISP and cloud services to many other customers.
“This acquisition enhances our global status as the ICT partner of choice, including now in India, one of the key areas of our future growth, ”said Katsumi Nakata, Senior Vice President of NTT Communications.
According to a press statement, the NTT Com Group will continue to build global strengths with a special focus on Asia, aiming to achieve global sales revenues of at least 1.5 trillion yen, including a doubling of ex-Japan sales revenues, by 2015.
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