Edinburgh-based AFG Media is setting up the Morph Costume Company, which will sell full fancy dress outfits rather than just its Spandex all-in-one suits.
The firm – which last year secured £4.2 million from the Business Growth Fund – has also bought Digital Dudz, which was founded by Mark Rober. His app allows users to see content on their mobile phones when they point the devices at the costumes.
Gregor Lawson, one of the co-founders of AFG Media and the brother of Scotland rugby international Rory, said: “Fancy dress is a $6bn industry worldwide, yet there are no recognisable brands in the sector. When we launched Morphsuits, we certainly shook up the industry and now with Morph Costume Company we hope to take things to the next level.”