The Hindu Business Line : PreMedia Global gets Rs 72 cr funding

Chennai, Jan. 22 PreMedia Global USA Inc (PMG), a US-based knowledge and content service provider with operations in Chennai, has received about Rs 72 crore of private equity funding from JM Financial India Fund. The amount would entirely be earmarked for overseas mergers and acquisitions (M&A), said Mr Kapil Viswanathan, Co-Chief Executive Officer, PMG.

“JM Financial has expertise in transacting M&A deals. Since our growth strategy is entirely focused on M&A, we see JM as a strong financial partner,” he said. JM Financial will hold minority stake in the company, he added.

Europe venture

The company will conclude an acquisition in the next 2-3 months, he said without disclosing any details. PMG develops content for college and school textbooks and journals in the US and Canada, and is now planning to enter the European market. “In the next three months, we plan to venture into Europe,” Mr Viswanathan said. This could be through acquisitions (PMG buying a European publishing house or a European publishing house buying PMG’s American client) or through bagging new deals in that region.

Acquisitions

Last year, PMG acquired three companies in the US. “We will acquire companies that can either help expand our capabilities, give access to new customers or help us scale up,” Mr Viswanathan told Business Line. According to various reports, the global market size for content is estimated to be about $8 billion (about Rs 32,000 crore), of which, India has currently tapped about $200 million (about Rs 800 crore).

Domestically, the company plans to go public in the next 2-3 years. It will double headcount to 1,000 by September and would move into a new facility at Ascendas IT park that can house 750 employees in three-shifts.

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