This is the latest acquisition for Video Island, which has venture capital backing from debt provider EVP and last September acquired .
For existing DVDs365 customers, the deal means access to a total of 33,000 titles as well as movie news feeds. As part of the acquisition, DVDs365 founder and managing director Bill Dobbie will join Video Island as a board adviser.
"We are delighted to be joining forces with Video Island. There is no other European based online DVD rental company in its league," Dobbie said.
The acquisition follows Video Island picking up an additional 拢5m of funding through its deal with EVP.
Saul Klein, Video Island chief executive officer, added: "Combining DVDs365's expertise with Video Island's unrivalled financial backing, innovative partnership strategy and position in the market, creates a uniquely strong independent player.
"Together we look forward to meeting the challenges presented by an industry growing at an unprecedented level."
According to latest Video Island figures, the firm handles 1.5m shipments a month, the equivalent to more than one DVD a second.
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