Giles Insurance Brokers has expanded its reach in the Midlands after acquiring Dudley-based rival Lester Bashford & Webb.
The purchase comes hot on the heels of other Giles acquisitions in Scotland and Wales and means it now commands around £200 million in premium income.
Established in 1987, Lester Bashford & Webb is a successful community broker, which handles around £9 million in premium income, and employs 20 staff.
Chris Giles, chief executive of Giles Insurance Brokers, said: "Lester Bashford & Webb is a well-established and respected broker in Dudley and we are sure the business will prove an excellent fit with our existing successful operation in Halesowen.
"This latest acquisition cements our position as one of the leading independent brokers in the UK."
Sean Finnegan, managing director for the Giles Central Region, said: "Birmingham and the West Midlands is crucial to our expansion plans.
"This is just the first of a number of deals we are looking to do in the region, as we seek to build on our existing presence in this very important market.
"We have a number of further acquisitions in the pipeline in the area and expect to do at least one more before the turn of the year."
Two of the principals in the company - Tony Webb and Doug Bashford - will become directors at Giles, while the third, Roy Lester, will retire.
Mr Bashford said: "We are delighted to be joining forces with such a major player.
"Teaming up with Giles will benefit our clients as it will allow us to pass on the economies of scale which come from being part of such a large group.
"We look forward to playing our part in helping the business grow in Dudley and throughout the West Midlands."
The acquisition of Lester Bashford & Webb comes a matter of days after Giles bought leading Welsh broker Hedges & Rose.
Last month Giles bought Scottish broker Crosbie & Jack, which controls some £20 million in premium income.