Online giant Amazon has agreed the full acquisition of film rental specialist Lovefilm.

Terms of the deal were not disclosed but Amazon’s takeover is understood to value Lovefilm at about £200m. Amazon already had a 42% holding in Lovefilm.

Amazon vice-president of European retail Greg Greeley said: “Lovefilm has been innovating on behalf of movie rental customers for many years and with the advent of the Lovefilm player, they are further delighting customers by streaming digital movies for their immediate enjoyment.

“Lovefilm and Amazon have enjoyed a strong working relationship since Lovefilm acquired Amazon Europe’s DVD rental business in 2008 and we look forward to a productive and innovative future.”

As well as the UK, Lovefilm operates in Germany, Sweden, Norway and Denmark.

Subject to regulatory approval, the deal will be completed in the first quarter of this year.