Japan's NTT to acquire remaining 19% in Netmagic

Japan's Nippon Telegraph and Telephone (NTT) Communications will acquire the remaining 19 per cent it does not own in Indian data centre firm Netmagic from the company's founder, Sharad Sanghi.

Netmagic, already an NTT Communications company, is India's leading managed hosting and cloud service provider, serving more than 1,500 enterprises globally. A pioneer in the Indian IT Infrastructure services space, the company provides services such as cloud computing, managed security, disaster recovery-as-a-service and software-defined storage.

Netmagic, already provides remote infrastructure management service to NTT Communications' customers across the Americas, Europe and Asia-Pacific regions.

NTT, which had acquired 74 per cent stake in Netmagic in 2012 for around Rs900 crore, acquired an NLD licence to launch network services in India in December 2015.

NTT later increased its stake in Netmagic to 81 per cent.

While at the 2012 price, the 19 per cent stake should be worth at least Rs240 crore, actual price should be much higher considering the additional investments in cloud-computing and data centre.

The company also added a number of clients over the last four years.

Sanghi, however, will continue as CEO and MD, reports quoting sources close to the development said.

NTT plans to infuse an additional Rs2,000 crore in Netmagic, which will be used to more than double its data centre capacity to 1.3 million sq ft by 2018.