NTT Communications is boosting its position in the managed services market with the acquisition of Secure-24 Intermediate Holdings.

NTT Communications is the IT and communications unit of Japan-based telecom company NTT Group. Terms of the deal were not disclosed; NTT Com is buying Secure-24 from private equity company Pamlico Group. Secure-24 is based in Southfield, Mich, and has operations in India. It’s customers include Fortune 1000 companies in finance, healthcare, insurance, government, manufacturing and transportation, according to NTT Com. Its portfolio includes managed application and database services such as SAP, SAP HANA, Oracle and Hyperion, among others.

According to a recent report by Markets and Markets, the managed services market is expected to grow from about $152 billion this year to $258 billion by 2022, reflecting a compound annual growth rate of more than 11%. The company found that cloud-based technology is the fastest-growing deployment type and is expected to have the highest CAGR during that period.

NTT Com is looking to leverage those trends. In June, NTT Com launched a software-defined Wide Area Network service portfolio, and the company recently announced that it would combine its cloud infrastructure-as-a-service offering with that of fellow NTT Group subsidiary Dimension Data, and the combined solution will be managed by NTT Com. NTT Com recently demonstrated some of its cloud and data analytics offerings at the Formula One U.S. Grand Prix; racing team McLaren Honda is one of its customers.

According to the company’s recently reported quarterly results, NTT Com saw its operating revenues rise 16% year-over-year between its fiscal 2016 and fiscal 2017. Its cloud computing revenues were up more than 13% over last year, while its solution services line of business saw growth of more than 11%. The global NTT Com Group’s revenues were up 41% year-over-year, the company reported (pdf).

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