Leicestershire marketing agency Digital Ethos has acquired Boxed Red, an agency based in Knutsford, Cheshire.
Management said it would pave the way for growth across both brands.
Digital Ethos works with clients such as Acclaim Driving, Accurist watches, Staffcircle recruitment and the French tourist board.
Boxed Red marketing has worked with companies including Barratt Homes, Redrow and STA Travel.
Digital Ethos chief executive Luke Tobin said: “I’m delighted to finally announce the acquisition of Boxed Red Marketing, this is a huge step for Digital Ethos and I’m so thankful for the opportunity to grow our talented team and become a dominant service provider in the north.
“This acquisition will increase our group revenue by around 25 per cent while allowing us to expand our service offering.
“Boxed Red also has clients up and down the country and having localised business units in different cities is an important part of our growth plan.”
Janna Caley, previous owner and director at Boxed Red said she was committed to staying with the company to ensure a smooth transition for staff and all clients.
Boxed Red is already headed up by established managing director Ruth Gresty.
Ms Caley said: “The acquisition was a natural fit for Boxed Red as the ethos of both businesses aligned so well.
“It was important to me that the brand and staff were retained and now with the support of a wider team, Boxed Red will be able to even better service our fantastic clients, further exceeding their objectives.
Digital Ethos has aspirations of becoming a European force in strategic marketing with the opening of a new office in Hamburg, and offices in Manchester and other cities as it grows its offering in the north of the UK.