Cue Clothing Company has acquired a shareholding in womenswear label Dion Lee.
The acquisition follows a design collaboration between the two companies in 2010.
The partnership is aimed at accelerating the designer label's domestic and international growth.
Designer Dion Lee will remain independent from the Cue and Veronika Maine brands.
Cue Clothing Company founder Rod Levis said this was a mutually beneficial deal.
"We have found Dion to be a young man of rare talent, who has justified the many awards and accolades he has received.
"We look forward to forging new synergies together and assure Dion Lee's customers that teh Dion Lee brand will continue to be developed by Dion, as Australia's leading designer label."
Lee said he was equally pleased with the partnership.
"I have a great deal of respect for the Cue team and feel very lucky to be working with a partner who supports my creative vision for the future."