NTT Communications Corp. Japan has acquired 75% equity in Netmagic Solutions, a leading Indian managed IT hosting services company operating seven datacenters in India. This acquisition is subject to approval from various relevant Indian authorities.
The investment amount has not been disclosed in the press release sent to us. This looks like a strategic investment, where Netmagic will not only get much needed funds infusion but will also be able to leverage NTT Com’s global network and datacenter footprint for customers.
Sharad Sanghi, who will remain the CEO of Netmagic Solutions said,
This alliance will help Netmagic to leverage NTT Com’s global network and datacenter 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 Netmagic’s expertise and leadership position in the managed IT hosting and cloud services market
Netmagic Solutions has a roaster of over 1000 customer across the globe and has been the leading provider to global enterprises from multiple locations and has been awarded the ’Datacenter Service Provider of the Year 2011’ by Frost & Sullivan.
From NTT Communication’s perspective, this acquisition will further their status as a Global provider of ICT services to Enterprises worldwide. This acquisition is in line with their vision of providing one-stop ICT services, including the managed operation and maintenance of networks, datacenters, servers and applications.
Nexus Venture Partner exits from Netmagic
Nexus Venture Partners had invested in Netmagic 4 1/2 years back and with the NTT acquisition, they have completely exited from Netmagic. Sharad Sanghi has sold only a minor stake and will be fully involved in the growth of company henceforth. All other investors have exited from Netmagic.
Nexus has had a good run over last couple of years with this exit being their 5th exit in 18 months. Nexus’ other exits were in OLX, which was acquired by Naspers, Dimdim by Salesforce, Cloud by Citrix and most recently Gluster by Red Hat.