The Newcastle-based company, headed up by chairman Mark Simpson, is the latest northern printer to establish a London arm through acquisition, following Bezier's acquisition of Coutts Retail Communications in March this year.

The deal is the second time the Heathrow-based company has been bought in the last two years after business consultancy group Realisis purchased point-of-sale specialist Terry Smith Group in July 2007 to form Realisis TSG.

Simpson said: "It has been clear for some time that consolidation would take place within our sector and for a number of months Simpson Group has been looking at acquisitions as part of our ambitious growth plans.

"It was a problem in the past that we didn't have that link to London, but now we've rectified that. Realisis has similar kit and is a similar outfit to us. It is ideally located close to nearly all the UK's leading high-street brands."

He added: "One of our first actions will be to put in place a long-term plan, which will be agreed after consultation with employees and after we have undertaken a review of the business."

William Flynn, Realisis In-Store chairman, said: "Simpson Group has a great reputation within our sector and that really is the key to this deal. It understands where the market is going and the challenges and opportunities that our customers face.

"That knowledge and understanding, together with strong management skills, will take the Realisis In-Store business forward."

Simpson Group was established in 1972 and has a current turnover of £9m.

The administrator appointed to Realisis was Hacker Young's Andrew Andronikou.