NTT to acquire 74% in Netmagic

Deal Curry reports.

This acquisition allows NTT to expand its capability to provide one-stop ICT solutions in the Indian market, as well as accelerate its cloud services through expanded ICT infrastructure.

According to The Economic Times, Sharad Sanghi, founder and CEO of Netmagic Solutions, says the tie-up will help Netmagic scale up.

"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,” adds Sanghi.

Techcircle.in says Nexus Venture Partners and Fidelity International (both lead investors in Netmagic Solutions), along with Nokia Growth Partners and Cisco Systems, will exit the company.

This means Sanghi will now hold the remaining 26% stake and continue to hold his position as CEO.

This is the fifth significant exit in 18 months for Nexus. In 2010, Nexus made an exit when Naspers acquired OLX and also exited Web collaboration company Dimdim when Salesforce acquired it.

Last year, Nexus made the same move when Citrix acquired Cloud.com for $200 million to $250 million. And finally, there was another exit for Nexus when Red Hat bought Gluster for $136 million.