MUMBAI: Entertainment and media solutions company JMD Telefilms Industries is acquiring Trading Gate FZCO, a Dubai-based digital and media company, for Rs 120 million.

The two companies have signed an MoU. The effective date of acquisition is expected to be 1 March following the regulatory and statutory approvals.

The total buyout will help the Indian company tap the Gulf and European markets, selling its content and digital solutions in these markets. 
 
“We are planning to get more aggressive on the digital and social media front. Trading Gate is the right choice as they are well-known for providing solutions to digital and media companies. Also, with this acquisition we will get access to their readymade infrastructure for shooting in Dubai. Besides, we can make Tading Gate‘s specialty services in digital space available to Indian media companies,” JMD Telefilms chief executive officer Rajesh Joshi tells Indiantelevision.com.

Trading Gate FZCO is a five-year company providing digital and media solutions to the entire Gulf region. Offering specific solutions framework and services in the media learning and knowledge management space, the company also has clients in Europe. 
 
JMD has earmarked Rs 300 million for possible acquisitions in MVAS space in the near future.

“The long term plan is to set aside Rs 1 billion for further acquisitions in the digital and media solutions space,” says Joshi.

JMD‘s diversification into MVAS and digital solutions has gained momentum and is seeing growth and revenues coming from these areas. The company has been working with mobile operators for its devotional and regional content. It has also been in talks with the local channels in the Gulf for airing its regional content programme.