Mumbai-based film studio and digital entertainment firm Eros International Media Pvt Ltd plans to execute its previously disclosed deal to buy Chennai-based mobile value added services (VAS) provider Universal Power Systems Pvt Ltd (UPSPL), which operates under the banner of TechZone, through an all stock deal.
The firm said on Friday its board has approved the deal but did not share the transaction value.
Last June, it had signed a term sheet for the proposed deal.
Established in 1991 by Naveen Bhandari, TechZone is an aggregator, developer and distributor of entertainment content via mobile platforms in India. The company is focused on Bollywood films and music markets, and also has region-specific content in Tamil and Telugu.
The company has partnered with leading mobile operators in the country and has its own mobile short code – 560560. TechZone makes its content available to end-to-end users via caller ring back tones (RTBs), mobile radio, SMS, WAP and IVR. TechZone claims to have done an average of 25 million SMS, WAP or IVR transactions per month.
It has offices in Bangalore, Delhi and Mumbai, besides Chennai. It is operational in 14 countries and has over 225 employees.
Founded by in 1973, Eros is a movie production and distribution company which co-produces, acquires and distributes Indian language films in multiple formats worldwide. The firm has aggregated rights to over 2,000 films in its library, plus approximately 700 additional films for which it holds digital rights only.
Eros also runs a movie streaming venture under ErosNow.
On Friday, shares of Eros International closed at Rs 389.8, up 0.92 per cent on the BSE in strong Mumbai market.
(Edited by Joby Puthuparampil Johnson)