W, which has more than 60 staff and has won clients this year including Lidl and Camden Town Brewery, was the winner of the mid-sized consultancy of the year at the PRWeek UK Awards 2015. Among its most prominent work has been launching Independent spin-off newspaper i in 2010.
PRWeek had heard from multiple sources that the agency would be taking over House.
W responded with a statement, written jointly with House, saying: "The proposed acquisition will see W leverage House’s expertise in entertainment and hospitality brands, while House will be able to draw on W’s award-winning work in media, technology, and FMCG, as well as its industry-leading digital and influencer capabilities.
"In the event that discussions are concluded successfully, House will operate as a standalone division of W and offer a conflict shop opportunity to clients wishing to capitalise on W’s sector-specific connectivity while maintaining separate account direction and day-to-day management."
According to its website, House PR has 20 staff and clients include Yakult, Mountain Warehouse, Sport Relief, 20th Century Fox and Warner Brothers.
The agency was formerly known as Henry's House after founder Julian Henry, who now works for XIX Entertainment. When he left in 2009 it became House PR, and was led by Ginny Paton, who first joined the firm in 2003 and is now its MD, and director Sam Oxley, who left the agency late last year to freelance, according to LinkedIn.