NTT will have a 74 percent share in Netmagic Solutions, the maximum allowed a foreign company according to Indian law.
Christopher Davis, a spokesman for NTT, said the deal has yet to be officially endorsed by the Indian government. He said NTT purchased its controlling share of Netmagic for 10 billion yen, or roughly $128 million.
The move, according to NTT, will help the Japanese company enter the fast-growing Indian telecommunication market.
This acquisition enhances our global status as the ICT partner of choice, including now in India, one of the key areas of our future growth, said Katsumi Nakata, Senior Vice President of NTT Communications. By leveraging the complementary strengths of both companies together with the continued leadership of Mr. Sharad Sanghi as CEO of Netmagic, we will accelerate enhancement of our global cloud services for the provision of high-quality ICT services.
NTT wants to be able to provide global data clouds and networks with which companies can conduct business globally. The company hopes to generate $1.5 trillion yen ($19 billion) in revenue by 2015.