IOS confirmed this week that Felstead had decided to step down from his position, with immediate effect. However, PrintWeek understands that he will remain a shareholder and adviser to the company.

Dixon, who was unavailable for comment, will replace Felstead as the chief executive of the combined IOS and Lateral Group businesses from 1 December.

Dixon has been working as a part-time adviser to the board of the two businesses since selling Lateral Group to US-owned IOS three months ago and it was initially envisaged that he would be appointed to a non-executive role.

However, Felstead’s departure has resulted in Dixon returning full-time to take the helm of the £150m-turnover transactional and marketing communications giant.

There have been no other changes to the existing senior management team, which includes Lateral Group chief executive Jason Cromack, IOS chief operating officer Andy Young and executive vice-president Yolanda Noble.

IOS declined to comment on Felstead’s departure from his position as chief executive and Dixon’s appointment.

Felstead had been with the business for some 18 years, in which time he guided Dsi through its initial growth and merger with CMM and later with DST Output to form IOS.