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

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

The acquisition, signed on Tuesday (30 May), will be funded through a combination of cash, shares and revenue from future profits, and will mean IPS founder Andrew Balcombe (pictured left) bows 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".

Charterhouse, based in Hatfield, has achieved 33% year-on-year growth for the past three years, from a turnover of 18m with 22 staff in 2003 to 32m and 60 staff last year. The addition of IPS brings the employee total to 110 and, despite the structural review, the firm said no redundancies were planned.

Charterhouse chief executive Gary Mahoney (pictured centre) has been meeting clients of the two firms for several weeks and said news of the acquisition had been received favourably.

The firm plans to reveal its new corporate brand and image in October, until which time it has branded itself Charterhouse Intelligent Print Solutions.

CHARTERHOUSE
Sites London, Hatfield, Amsterdam
Annual Turnover 33m
Staff 60
Clients Airmiles, Nissan, Renault, Powergen, Waitrose, Wickes, Which?

IPS
Sites Tonbridge
Turnover 18m
Staff 50
Clients Sony, Unilever, Shell, ING Direct, T-Mobile