Tree, currently owned by Cagney, was founded in 2001 by Steve Mattey and Matt Bayfield. It has capabilities in database management, research and analysis, with clients including O2 and VW. Mattey and Bayfield will remain with the business following the acquisition.
It is expected that the deal will be finalised during February 2010.
Chime also revealed the terms of the deal that saw it merge Bell Pottinger Corporate and Financial with City firm Pelham. Chime will pay £2m for a 60 per cent shareholding in the combined business, of which ten per cent will be paid in Chime shares.
The deals will be supported by a £4.5m share placement, via a vendor placing of £1.8m and a cash placing of £2.7m
Lord Bell, chairman of Chime Communications, said: ‘I am delighted with the merger with Pelham and the proposed acquisition of Tree. These are attractive transactions financed in a sensible manner and further enhance our position as the Modern Communications Group.'