BSMG Worldwide has snapped up Top 10 City PR firm Square Mile in a deal believed to be worth up to pounds 10 million.
The global agency - a subsidiary of US-based marketing services giant True North Communications - acquired Square Mile after months of negotiations, adding the financial PR outfit to its existing IR capabilities.
Square Mile founders Susan Ellis, CEO, and Tim Jackaman, chairman, together with joint chief executive Paul Philpotts, will join the BSMG holdings board as directors.
The deal will see the agency change its name to Square Mile BSMG Worldwide, with no immediate plans to drop the Square Mile brand.
Jackaman said: 'The immediate effects will be for our clients - we can now offer a much broader range of services, including corporate, financial and public affairs, and greater capability to service their international needs.'
Square Mile, which has a fee income of around pounds 4 million, will merge its corporate division with BSMG in London and use its international reach to offer existing and new clients global PR support.
The deal will also see Ellis and Jackaman take on wider roles. Alongside her position as joint CEO, Ellis will now co-ordinate BSMG's global financial activities, while Jackaman will be responsible for expanding the agency's client base in Europe.
Tim Sutton, BSMG Worldwide European chairman, said: 'It's no secret that for some considerable time we have been waiting to secure a first rate IR and financial PR capability in the UK. It was an omission not to have this in London.'
BSMG has over 15 offices and 350 staff throughout the UK and Europe.
Earlier this year, BSMG bought UK public affairs specialist GJW for pounds 8 million (PR Week, 19 May).
In the US, BSMG owns leading IR brand, The Financial Relations Board.