The 14-strong corporate and consumer team will now operate under the Text 100 banner, and the August.One name could be scrapped altogether.
The agency stressed that there would be no redundancies, but it has emerged that deputy MD Sally Hetherington has already resigned.
August.One, the consumer and corporate arm of the Next Fifteen Communications Group, has seen fee income fall from £6.2m in 2001 to £2.3m in 2006. This was due in part to Next Fifteen shifting its UK Microsoft B2B brief into another sister agency, Inferno.
August.One MD Sarah Howe denied a drop in fee income was the main reason for closing down. She said: ‘This move benefits clients of both agencies, giving them access to a wider talent pool, and benefits staff.'
At tech agency Text 100, Howe will work with UK and Ireland MD Nick Giles and head of EMEA Andrew Macgregor.