Netmagic looking at acquisition, fund raising

MUMBAI: India's leading managed IT service provider Netmagic Solutions could look at an acquisition and a fresh round of fund raising for its expansion over the next 6-12 months, a top company official said. "We are looking at an acquisition particularly in the sphere of application and database management...we are in dialogues with some companies but there is no immediate announcement," Netmagic CEO and MD Sharad Sanghi told PTI. "We are looking for the right fit (for acquisition) and it is possible in the next 6-7 months," he added. Netmagic specialises in internet data centres, managed hosting, network operations and has recently began offering remote infrastructure management. In February, it had raised Rs 80 crore through private equity funding through Fidelity International Ltd and Nexus India Capital. However, to expand its managed IT networks and remote infrastructure management business, it could look at a fresh round of fund raising through debt. "We will be raising more fund in another 12 months through some debt...it could be a few hundred crores," he said. Sanghi said that the proceeds of the earlier round of funding will be deployed in setting up new data centres in Mumbai, Delhi and Chennai. It already has data centres in Mumbai and Bangalore in India and a virtual data centre in the United States. On impact of the possible recession in the US market, Sanghi said that while the growth remains strong, there was a slowdown in average revenue per customer.

Source: Economic Times