The new business has been rebranded Tangent Snowball and employs 85 staff led by Damian Bentley, previously managing director of Snowball.

According to the company, it offers data insight, planning, creative, technology architecture and development.

Bentley said: "We have seen a major shift in clients wanting to ditch their wide roster and seek out a new breed of full-service agency.

"They want businesses that can create powerful connections while demonstrating effective and measurable performance. By merging Snowball and Tangent One together we have created a company that does just that."

The enlarged company, which has a turnover in excess of £10m, has a client base that comprises Bang & Olufsen, Carlsberg, Citroen, Dunhill, Gala Coral Group and The Labour Party.

Tim Green, chief executive of Tangent Communications, said: "I’ve worked with Damian for two years now, since we acquired Snowball in 2009, and I know that he’s going to do great things for the business.

"He’s got big plans for the further growth of the agency – we’ve got an exciting time ahead."

Tangent acquired Snowball in September 2009 for £3.2m, comprised of a £1m initial payment, followed by a further £2.2m in cash and shares, dependent on the business meeting EBIT targets rising to a total of £1.5m over the three-year period to 31 August 2012.