The East Yorkshire-based agency will now operate as TaylorSyms Marketing and Public Relations and predicts it will double its turnover this year to £1.5m.
Red Arrow clients include Hull University and East Riding of Yorkshire Council. TaylorSyms declined to confirm which accounts have been transferred.
Beverley-based TaylorSyms was set up two years ago by Simon Taylor and William Syms and has 16 staff, an additional office in Hull and an alliance with a Leeds design shop, Anderson Design Associates.
TaylorSyms has, it emerged this week, also sealed a two-year brief to slash waste in the London Borough of Harrow. Its 'Slash Trash' campaign aims to reduce the amount of household waste going to landfill by 25 per cent this year.
The agency is targeting local and specialist media such as the Local Government Chronicle, MJ and waste-related magazines.
'We are managing a fully integrated campaign using PR, direct mail and newsletters, and are meeting with community groups,' said Taylor.
TaylorSyms' other clients include Halton Borough Council, Hull City Council, and the City of York Council. It has previously worked with the London Borough of Barking and Dagenham, Dudley Council, the Improvement and Development Agency and other local government clients.