The print management company, which was founded in 2003 by chief executive Tony Gill and managing director Steve Smith, said it paid outright for DMS, formerly part of the Involve Marketing Partnership, and that it will be run as an independent company.

Mosaic, which before the acquisition had a turnover of £23m and more than 100 staff, offers a range of services including print management, fulfilment, inbound and outbound telephony, data and analytics.

The company plans to separate Cheltenham-based DMS, which has a turnover of £10m and 39 staff, into two key brands including DMS and brand consultancy United.

Gill, who also founded envelope manufacturers Great Northern Envelopes and Encore Direct, said that creditors of DMS would receive all monies owed.

He added: "DMS is an excellent company with a fantastic niche in charities. It has wonderful people and great clients and going forward it’s going to be a growth story."

Former parent company Involve Marketing Partnership (IMP) placed two of its other subsidiary companies, direct marketing agencies Whitewater Creative Services (WCS) and the Involve Marketing Agency (IMA), into liquidation in April.

IMP chief executive Martin Smith said the group had opted for voluntary liquidation for the two companies after its lenders withdrew financial support.