London-based Hive has been established for six years, and serves a range of pharmaceutical and healthcare clients.

The 70-staff company generates enviable margins. According to the unaudited figures for the year to 31 December 2013 it posted sales of £9.1m and adjusted EBITDA before one-off items of £2.9m, giving a margin of 31.9%.

In the prior year the fast-expanding firm made EBITDA of £1.1m on sales of £5.9m.

St Ives will pay an initial £20.9m for the debt-free business, with £16.8m of that in cash and the rest in shares. Subject to Hive’s future performance through to December 2016, St Ives could pay a further £29.1m, of which 80% will be in cash.

Hive’s existing management team including founders Ian Busby, Jas Hummel and Tim Scorer will remain with the business.

St Ives chief executive Patrick Martell said the buy complemented its existing operations.

“The acquisition considerably increases our credentials in the large and very attractive healthcare and pharmaceuticals industries,” he said.

The buy propels St Ives’ spend on marketing services businesses to £200m. It began its spree in the summer of 2010 with the £12.6m purchase of Occam DM.

Just two months ago it acquired digital marketing agency Realise in a £40m deal.

In its half-year results the £317m turnover group posted a 50% jump in marketing services revenues to £46.7m.

St Ives shares rose 4p to 202p in early trading. The 52-week high is 209.75p.