The move, which will involve rebranding four-strong Financial Village as Delta, is M's first acquisition since its launch in 2002.
Financial Village, set up 12 months ago by former investment bankers Tim Draper and Jonathan Gollins, is forecasting first-year revenues of around £1m. "This is an entrepreneurial acquisition," said M co-founder Hugh Morrison. "We're investing in a talented team that has a clear plan for growth and a focused idea of how to achieve that."
M has an option to acquire 100 per cent of Delta in three years' time, although Morrison would not rule out bringing other agency or financial partners into the new company.
By the end of the decade, M co-founders Morrison and Nick Miles hope Delta will achieve £5m in revenues.
M will provide two non-executive directors, but Delta will continue to be run by Draper and Gollins.
"We have seen phenomenal growth in the AIM and OFEX markets," said Miles. "We see a similar story emerging in Europe, where Delta will also establish a presence over time."