Spike has acquired Web developer and heavy media production company New Toys for $1 million in cash and 1.38 million Spike shares, it was announced yesterday.
Three-year-old Web developer New Toys specialises in Web streaming of audio and video, film broadcasting and television and has big-name clients such as the Australian Army, Aristocrat, Andersen Consulting and Canon.
Under the deal finalised last week, the two will retain their separate brands but reports say Spike may move and join New Toys in Pyrmont.
Commenting on the buyout, Tim Seager, managing director of New Toys, said: "It's a good fit."
Both Spike and New Toys have complementary skills, he said. For Spike the deal looks to be a profitable one as New Toys has doubled its revenues year on year.
"This financial year we'll turn over between $4-5 million and the forecast for the next is double that again," Seager said.
The acquisition gives Spike a wider skill base in which to reach its target market -- youth -- and the two companies will be working on projects together in the future.
One project yet to be signed off is a live Web-a-thon for Canteen, the teenage cancer charity. It will be relayed to a big screen in Australia Square and will feature two celebrities.