FMG acquired ISDN Media and renamed it Devil7 with no job losses among the five staff, moving from Windsor and Portsmouth to share an Islington office with FMG.

Lee Waller, Devil7 managing director, said clients included M&C Saatchi and Citigate, and he had worked with FMG's parent, Colour Systems, for several years.

"We felt there would be mutual benefits if we combined to create new technologies to help reduce communications costs for pre-press, publishers and printers."

This included voice telephony, data transmission and "anything they use to communicate", he said.

Waller said a new product was due early next year allowing any firms working together to communicate for free. Its technology was "underwraps" until closer to the launch, he added.

Les Pipe is chief executive of FMG, launched by Colour Systems and with two subsidiaries, the creative retoucher Size Creative and techno arm Applecart Solutions.