WH Ireland has bought TD Waterhouse's Leeds-based institutional stockbroking business, which specialises in the hotels and leisure, retail, support services and transport sectors.
No financial details were given.
Chris Muir, recentlyappointed managing director of WH Ireland's broking division, said: "The transaction presents not only an excellent strategic fit on the institutional side but also provides the base on which WH Ireland can build a significant stockbroking operation in Leeds."
WH Ireland, a leading regional provider of stockbroking, corporate finance, investment management and financial services to both private and institutional clients, with a substantial office in Birmingham, will be taking on a team of 11.
The acquisition will complement established specialisations, including IT, natural resources and speciality finance, which it has developed in London and Manchester.
It follows on from the purchase of a majority stake in DJ Carmichael, the Australian stockbroker, in 2005 and is part of WH Ireland's plan to grow the business substantially over the next few years, both organically and by acquisition.
WH Ireland said the arrival of the TD Waterhouse team provided the opportunity for it to significantly leverage the corporate finance side of the business, which has in excess of 60 clients for whom it acts as nominated adviser and/or broker.
Michael Foulkes, president and chief executive of TD Waterhouse Europe, said: "The divestment of our Leeds institutional business is a strategic decision and will give us the opportunity to concentrate on our core business of retail discount brokerage."
WH Ireland's Birmingham office recently advised IT specialists Nasstar on the placing of 10,900,000 ordinary shares and admission to the AIM market, in a move to raise more than £2.5 million.
Nasstar was founded in 1998 and expanded its offering in 2002.
As well as providing access to a range of business-related software, London-based Nasstar's services include domain registration and internet access, as well as more specialist internet-based service.
These take in integrated website and customer management solutions, content management systems, offsite back-up and Virtual Private Networks.
Tim Cofman, corporate finance director at WH Ireland in Birmingham, said the AIM market remained buoyant throughout 2005 and the out-look for 2006 was strong.
He said: "The technology sector in particular is recovering strongly and some excellent investment opportunities are coming to market."