Software firm Geodesic Information Systems Ltd will acquire 94% in magazine publisher Chandamama India Ltd for Rs10 crore, a top Geodesic executive said on Tuesday.
The cash component of the cash-cum-stock deal will amount to Rs1.6 crore, he said. The company had announced the acquisition on Monday.
Geodesic is planning a makeover of the children’s magazine—now in its 60th year— whereby the content will also be available on the Internet and mobile media, according to Geodesic managing director Kiran Kulkarni.
“We will pump in money into the venture and revamp the content so that it can deliver our culture and build values as it has been doing, but on a modern theme,” he said.
So Hindu mythology will share space with information on iPods, he added, the goal being to bridge the generation gap.
“We are both in the content space. We were also looking at modernising Chandamama. We are working towards going in for e-publishing, interactive content...and other modern technology,” Viswanatha Reddi, editor and managing director, Chandamama, said.
“We need a strategic partner to take us to greater heights,” he added.
Geodesic provides content over its universal instant messaging system, which is available on desktops, mobile devices and also over Internet radio.
Chandamama, with a monthly circulation of around 2 lakh copies, would continue to have its own identity, Reddi said. “It won’t be overshadowed by another.”
There have been reports in the past of Walt Disney Co. planning to acquire a stake in Chandamama.
Geodesic expected to complete the acquisition by 31 March, and the consolidation of the accounts would commence from 1 April, Kulkarni said.