MySale is paying AU$2.7m (£1.6m) for Identity Direct which specialises in personalised gifts and school supplies. It has partnered with big brands including Disney, Sesame Street, Nickelodeon, Peppa Pig and Thomas & Friends.
Aim-listed MySale plans to explore an additional revenue steam with its acquisition. To turn the business around, MySale will cut operating costs by combining shared services and will also improve shipping rates and reduce payment processing costs.
MySale's chief executive Carl Jackson said: "This acquisition will allow us to build an additional revenue stream that is very complementary to our existing core activities.
"We believe that MySale's strength and expertise as an online retailer of scale will bring many benefits to Identity Direct which in turn will unlock significant opportunities and efficiencies hitherto unavailable to that business."