UK supermarket chain Tesco has announced its acquisition of Mobcast, a white-label ebook platform provider. According to The Telegraph, the deal closed for £4.5 million ($7.14 million), and will give Tesco access to a catalogue of more than 130,000 titles, as well as an established cloud infrastructure for purchasing and storage.
The acquisition comes as Tesco continues to build out its online content business, in competition with UK rival Sainsbury's. Last year, the company bought video platform Blinkbox, following it up with the acquisition of music streaming service We7 earlier this year. Sainsbury's, meanwhile, recently announced plans for its own video service, to be powered by Rovi.
Mobcast was founded in 2007 by CEO Tony Lynch and Andy McNab, the pseudonymous author of a series of popular military fiction books in the UK. Tesco has not revealed details of how it plans to integrate the company into its current content business.