Charterhouse managing director Mike Newman (pictured right) said: We now have a UK-based print spend of about 60m and at that level, from the research weve done, were in the top five.

Newman believes that although the company could have achieved this level organically, the acquisition of IPS has given it a considerable boost. Bringing the two companies together probably moves us on about two years ahead of where I thought wed be, he said.

The acquisition, which was signed today, will be funded through a combination of cash, shares and revenue from future profits, and will see IPS founder Andrew Balcombe (left) bow out of the business he has built up over the past decade. Balcombe said his decision to sell IPS was a result of a desire to diversify into other areas.

Read more in Thursday's issue of PrintWeek.