Huntsworth and Incepta Group have agreed to an all-share merger to create a major international marketing and communications group with a market capitalisation of £195.4 million.
The boards of Huntsworth and Incepta stated that the merger would deliver enhanced revenues from existing multinational clients through increased international presence.
Bringing the firms together should accelerate future growth through cross marketing of the group's brands and services to each of the company's existing clients.
The groups see estimated annualised pretax cost savings of at least £2.5 million achievable in the first full financial year following completion of the merger. A strategic review into the merger should be completed before the end of the 2005 financial year, Huntsworth said.
Huntsworth, has a number of subsidiary operations, including Harrison Cowley in Birmingham and Sutton Coldfieldbased Haslimann Taylor, while Incepta, owns Citigate Dewe Rogerson - the country's largest financial public relations firm with a large operation in Birmingham.
Following completion, Lord Chadlington will become executive chairman of the group, Richard Nichols will become chief executive and Roger Selman will be finance director.
Huntsworth pointed to consolidation in the marketing and communications sector in recent years as the background to the merger.