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Software company Geodesic Information Systems Ltd has acquired 94 percent in children's magazine publisher Chandamama India Ltd. for Rs 10.02 crore ($2.27 million) in cash-cum-stock deal, Reuters reports.

The cash component of the deal amounts to only Rs 1.6 crore. It seems the price is pretty low since the magazine publisher is as old as 60 years and enjoys a strong brand recall. Earlier, there were talks of Walt Disney looking to acquire Chandamama for a rumoured Rs 20 crore.

Geodesic, which is a technology company seed funded by Mahesh Murthy's Passion Fund, has grand plans for the children's magazine, which sells 200,000 copies a month. It has plans to take it on the Internet and mobile media. Geodesic plans to acquire the remaining 6 per cent from individual shareholders in the future. [Via ContentSutra]