Historic health insurance group BHSF has acquired rival outfit WellWork.
It is the fifth buyout in the last three years by the group which can trace its roots back to the formation of the Birmingham Hospital Saturday Fund in 1873.
This latest move supports Edgbaston-based BHSF's plans to grow its occupational health division to provide nationwide coverage.
WellWork was formed in 1999 and provides occupational health services from offices in Newcastle-upon-Tyne, Liverpool and Glasgow.
Founder Geoff Helliwell will remain with the business for a handover period of several months.
BHSF Group chief executive Peter Maskell said: "We are very pleased to have acquired such a successful business which will strengthen our occupational health proposition and give us greater credibility in the marketplace.
"Initially, WellWork will be a subsidiary of BHSF Occupational Health but the plans are for the businesses to be integrated quite quickly.
"We are looking to acquire further suitable businesses in order to achieve a truly nationwide occupational health service."
BHSF said no redundancies were expected to arise in either company as a result of the deal and it believed expansion opportunities should bring the potential for growth in employee numbers.
Financial services firm BDO in Birmingham was lead adviser to BHSF on the acquisition. The team was led by corporate finance partner Malcolm Cook and assistant director Rob Slater.
Mr Cook said: "M&A activity remains strong across the healthcare sector. Deals like this, which represent a good fit both culturally and strategically, will continue to dominate the market as firms look to grow their geographic reach and market share.
"BHSF has a clear ambition to expand its service offering nationwide, and this acquisition marks another great deal done. We look forward to working with the management team as BHSF continues its acquisition trail."