Pagoda Porter Novelli will provide stakeholder engagement, media relations, social media and community consultation.
The agency will be staffed by a team of 20 and will operate out of the existing Pagoda PR offices in Eyre Place, Edinburgh.
CM Porter Novelli MD Angela Casey will be the MD of the agency. She brings a wealth of public affairs experience, having worked in Westminster, Brussels and Scotland. She was also convenor of the Association for Scottish Public Affairs and former chair of the PRCA in Scotland.
Casey said: "The launch of our new business represents a real step-change for the PR and public affairs industry in Scotland and the UK. We’re bringing together a core team of highly skilled, ambitious practitioners with a vision to be recognised as the most respected and successful agency in Scotland."
Ian Coldwell, formerly MD of Pagoda PR, will be deputy chairman and will focus on business strategy and sector expansion.
Sir Michael Hirst will remain as chairman of the agency.
The company will also retain an affiliate arrangement with worldwide group Porter Novelli. This will give it access to offices in multiple countries.