Japan based NTT Communications is acquiring 74% stake in Nokia Growth Partners funded Netmagic Solutions providing an exit route to the venture capital investors

The valuation is expected to be around R820Cr.

This acquisition allows NTT to expand it's capability to provide one-stop ICT solutions in Indian market as well as accelerate its offering of globally seamless cloud services through expanded ICT infrastructure Asia-wide. The acquisition is subject to regulatory approvals.

NetMagic was founded in 1998 by Sharad Sanghi, who had worked for the Unified Network Management Architecture Group at AT&T Bell Labs. Sanghi also worked on the National Science Foundation Network (NSFNet), which formed the internet backbone in the US in the early 1990s.

NetMagic provides managed IT services. It has 7 carrier neutral datacenters located in Mumbai, Bangalore, Noida (Delhi-NCR) and Chennai with over 200,000 sq. ft. floor space.

NetMagic Operational Performance

Netmagic has raised three rounds of funding since it's inception. In 2000, Netmagic raised $4 Mn from Exodus founders B V Jagadeesh and K B Chandrashekar, investor Kanwal Rekhi and venture capitalists including eVentures India and Global Technology Ventures. Then in 2008, it raised R80 Cr from Fidelity International Ltd and Nexus India Capital.

Finally in October 2010, Netmagic raised R70Cr in the third round led by Nokia Growth Partners and Cisco Systems. Existing investors Fidelity International and Nexus Venture Partners also participated in this round.

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