S&M bought Red after six months' negotiations, in a bid to expand and become a full-service facility. Red's kit, which includes a Spirit TK telecine machine and two DS Nitris, will be consolidated into Smoke and Mirrors' facility. S&M previously had to farm out telecine work.
The acquisition - backed by S&M's parent company, Tag - includes all of Red's kit and the estimated£150,000 cost of installing it at S&M. Red's 20-strong workforce, including creative director Gary Szabo and managing director Steve Luther, will also be moving from Red's Warwick Street site to Smoke and Mirrors' site in Beak Street. Only one redundancy, in the accounts department, was made.
Penny Verbe - who will remain chief executive at S&M - added: "It marks the growth of Smoke and Mirrors. With the addition of Red's Spirit TK, Smoke and Mirrors will have a much higher capacity not only for creative work, but also for versioning and delivery."
Szabo - who will now become client services director at S&M, said the sale of Red was prompted by the need for his company to offer a "broader range of services, larger infrastructure and financial muscle".
Red's move into the Smoke and Mirrors facility is expected to be completed by mid-December. Recent S&M projects have included C4 idents and BBC's forthcoming Christmas idents.