The company will trade as Formpro Mail Marketing and will be headed up by Bruce Copp who becomes chairman. Jonathan Horler is made chief executive and Mike Hughes becomes chief operating officer.

Hughes said that he hoped the merged companies would become a force in the direct mail sector. The business combines Formpro's Cheddar premises and Mail Marketing's Bristol and Weston-super-Mare sites. The firm's services will include personalisation, targeting technology, postal and print management.

"We both think there is a good market," he added. "We've put together a very strong management team."

Formpro Mail Marketing has around 10m in place to invest in new technology due to rising demands for personalised mail. "Substantial funds have been raised to develop the business further," said Horler.