The UK retailer believes that the acquisition will further strengthen Tesco’s digital entertainment offering.
Tesco Digital Entertainment CEO Michael Comish said that the company intends to offer its customers widest choice in digital entertainment.
"We are already one of the UK’s largest booksellers and Mobcast will help us offer even more choice for the large and growing number of customers who want to buy and enjoy books on their digital devices whenever and wherever they want."
Earlier, the British retailer had purchased film and television streaming service Blinkbox in 2011, as well as internet radio service we7 in June 2012.
Mobcast bestselling author & co-founder Andy McNab said as an author he always thought the ability to carry the library around and read on all your personal devices would be a huge benefit to all.
"We have developed a product that makes this possible, and being acquired by Tesco ensures that this original vision will be available to as many people as possible."
Mobcast, which has 130,000 titles available for download to tablet computers, mobile phones and e-readers, was founded in 2007.
UK-based Tesco is a traditional grocer and a general merchandise retailer and currently operates about 6,200 stores in 13 markets across Europe, Asia and North America employing over 500,000 associates.