The fitness/wellness DVD company Gaiam Inc. has purchased budget video company GoodTimes Entertainment in a $40 million deal. Gaiam, based in Broomfield, Colo., reports that the purchase may generate

The fitness/wellness DVD company Gaiam Inc. has purchased budget video company GoodTimes Entertainment in a $40 million deal. Gaiam, based in Broomfield, Colo., reports that the purchase may generate an extra $200 million in annual revenue.

The N.Y.-based GoodTimes' catalog features fitness and children's titles including the Tae Bo line and projects such as "Benji" and "Rudolph the Red-Nosed Reindeer."

Gaiam, best known for yoga and Pilates titles, also sells exercise accessories such as yoga mats.

The deal will be finalized by the end of the third quarter.