The shakeout of the indie production industry continued Monday with news that DHX Media has acquired cross-town Halifax producer imX Communications in a cash and stock deal.

As second- and third-tier producers continue to retrench, merge or close down, Halifax-based DHX paid $755,000 for imX, which was founded by Chris Zimmer in 1985, by handing out $655,000 in cash and 67,552 of its common shares.

The deal will see DHX Media pick up a library of 20 feature films, which includes the 1997 John Hurt and Jason Priestley-starring drama Love and Death on Long Island and Mort Ransen’s 1994 mining drama Margaret’s Museum, which stars Helena Bonham-Carter and Kate Nelligan.

The producer’s latest movie credits include the 2004 drama The River King, a Canada-U.K. co-production from director Nick Willing starring Edward Burns, and the 2006 drama Partition by Vic Sarin. It also had a hand in Sudz Sutherland’s hit Love, Sex and Eating the Bones.

Also in the mix are 26 half-hours of TV dramas, documentaries and cartoon series.

Zimmer will remain with the company under a consulting deal with DHX Media, which includes a non-compete clause. His focus will be on developing family and kids-themed feature films.

DHX Media was formed with the merger of kids show producers Decode Entertainment and Halifax Film in 2006. It acquired animation house Studio B Productions late last year, and most recently picked up Dartmouth, NS-based Bulldog Interactive Fitness, a domestic operator of kids fitness centers, again as part of a cash and stock deal worth in all $625,000.

The latest DHX deal comes two weeks after Entertainment One bought TV producers Blueprint Entertainment and Barna-Alper Productions and domestic distributors Oasis International and Maximum Films as it bids for London Stock Exchange and Toronto Stock Exchange listings.