Sydney-headquartered Switch said in a statement that the acquisition would add to the services it provided, ranging from consultation and delivery to ongoing services for broadcasters and content owners in Europe.
Mark Johns, the chief executive of Switch Media, said: “Europe is well and truly at the inflection point with rapid growth expected over the next few years, and Western Europe OTT TV episode and movie revenue set to hit more than US$23 billion by 2023.
"This is almost double the revenue of last year, which sat at about US$12 billion across 18 countries.
Mediasmiths AB came into being in 2011 as a wholly owned subsidiary of Mediasmiths International. It became independent after a management buyout in 2014.
Switch Media's acquisition does not include Mediasmiths Asia Pacific, another independent company, based in Australia, which is a separate entity.
Said Johns: "Mediasmiths is a well-established consulting company which, much like Switch Media, has developed a strong track record in delivering great results on the toughest of projects for its customers.
“Through their contribution in defining and implementing the cloud architecture for our server-side ad insertion solution, AdEase, it was apparent that the expertise at Mediasmiths was complementary to Switch Media and that we shared similar team values of integrity and innovation.
“It was clear that integrating the two companies presented greater growth prospects and would also deliver significant benefits to the customers of both.
“The larger organisation we become as a result of the acquisition, will allow us to provide more depth to the current services and products offered by both teams.”
The company will be renamed Switch Media, but will continue operating as usual in the immediate future. Staff will remain in Stockholm and all existing business relationships will be fully supported and serviced.