The company said Seafarm was the oldest and biggest fully integrated prawn aquaculture business in Australia, producing prawns under the Crystal Bay brand which were sold widely throughout Australia in supermarkets and seafood outlets.
Yahoo! News reports that CO2 will pay A$7 million upfront for the business and two further payments of S$2.1 million each in 2015 and 2016.
The acquisition was expected to be earnings positive this financial year.
The purchase follows CO2's recent acquisition of Marine Farms in Exmouth, from which it hopes to cultivate Black Tiger Prawns.
"The Seafarm business platform provides the opportunity for expansion of production and a pathway via increased tonnage to export markets," CO2 said in a statement.
The company hopes to adapt the Seafarm business to also produce the species.
CO2 said the acquisition was part of its broader Project Sea Dragon to produce 100,000 tonnes of black tiger prawns a year from huge grow ponds earmarked for a development site in the State's far north.
Shares in CO2 were up 0.2 cents, or 3.45 per cent, to six cents at 8.05am on Friday, 20 December.