Buying Magna Pacific would boost destra's annual earnings before interest tax, depreciation and amortisation from about $5 million to more than $11 million.
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Digital media company destra Corp is conducting due diligence on two or three potential acquisitions and expects to finalise some of the deals in the next three months.
CEO, Domenic Carosa said the company, which is bidding for the listed DVD distributor Magna Pacific Holdings, had about a dozen listed and privately owned companies "on our radar" as part of its strategy to build a wide-ranging digital content and advertising business.
Shareholders of Magna Pacific will vote on destra's offer of 38 cents a share in cash or one destra share plus 15 cents in cash a share on July 30.
The attempt to buy Magna Pacific triggered a protracted legal battle with American film distributor Lionsgate, which had offered 32 cents a share for the company.
Earlier this month, destra bought 19.99 per cent of Magna Pacific.
Around the same time, Magna Pacific defeated a Lionsgate challenge to stop it issuing 16.2 million shares to Paul Ramsay's Prime Television.
Prime, which owns 12.9 per cent of destra, now owns 13 per cent of Magna Pacific.
Mr Ramsay's media group is wrapping up a $30 million takeover of entertainment company Becker Group, which distributes movies through Magna Pacific.
Prime is expected to vote in favour of destra's bid.
Buying Magna Pacific would boost destra's annual earnings before interest tax, depreciation and amortisation from about $5 million to more than $11 million.
Merging the two companies would produce cost savings of about $2 million.
destra has raised about $17 million over the past 18 months by selling its web hosting, communications and internet domain names divisions.
At the same time, it has bought 10 media and advertising companies, including Rajon Distribution, MRA Entertainment and thescene.com.au.
Selling CDs, DVDs and ringtones through divisions such as Central Station Records, MRA, Planet X, Visual Entertainment and Rajon generates three-quarters fo destra's annualised revenue of about $60 million.
Ad revenue from websites and through ad sales company Brand New Media accounts for the rest.
Mr Carosa, who owns 6.5 per cent of destra, said the company was interested in buying only profitable businesses, ruling out a bid in the short term for the online DVD rental company Quickflix.
In June, destra increased its stake in Quickflix from 11.4% to 19.9% through a share swap with Quickflix shareholder Lachlan Murdoch.
Mr Murdoch, who quit as chief operating officer of his father Rupert's media empire News Corp in 2005, emerged with a 2.8 per cent stake in destra, prompting speculations he would invest more in the business and work with it to find new acquisitions.
Mr Carosa said he had had several conversations with Mr Murdoch since August last year, when the latter's investment company Illyria bought into Quickflix.