Pelham founder and CEO James Henderson will become MD of the new business which will be called Pelham Bell Pottinger. Chime will have majority control of the enlarged business.
PRWeek reported that Chime was in discussions with Pelham to boost its presence in the City PR space earlier this year (PRWeek, 29 September).
The transaction, which is subject to contract, is expected to be concluded before the end of 2009.
Chime chairman Lord Bell said: ‘A strong financial public relations offer is important to the Bell Pottinger Group. We have been impressed by the way James and the Pelham team have developed their business to date and their ambition to take it forward within Chime.'
Pelham CEO James Henderson added: ‘Pelham has grown very rapidly in the five years since its foundation and being part of the Chime Group will enable us to maintain that growth.'