Japan's NTT Com to acquire 74 % stake in Mumbai-based Netmagic

Japan's NTT Communications Corporation (NTT Com) has signed an agreement to acquire 74-per cent stake in Mumbai-based managed IT hosting services provider Netmagic for an undisclosed sum.

NTT Com is a subsidiary of Nippon Telegraph and Telephone (NTT) Corporation, one of the largest telecommunications companies in the world.

Netmagic is a managed IT hosting services provider and datac entre operator, founded by Sharad Sanghi in 1998.

"This alliance will help Netmagic leverage NTT Com's global network and datacentre 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," said Sharad Sanghi, who is also the chief executive officer of Netmagic Solutions.

Separately, Nexus Venture Partners, a lead investor in Netmagic Solutions, announced its exit from the Indian company. Nexus invested in Netmagic Solutions in late 2007.

This is Netmagic Solutions's fifth significant exit in 18 months for Nexus. In 2010, Nexus exited Indian free local classified ads site OLX with media group Naspers acquiring the firm, and also exited web collaboration company Dimdim when San Francisco-headquartered enterprise software company Salesforce acquired it.