"We've been looking for a potential acquisition in the UK for a number of years," said Stralfors UK managing director Mike Murphy, who will become group managing director. "We've taken our time to find the perfect fit."

The deal was signed last Tuesday (15 November), 13 months after Stralfors made initial contact.

DPS in Orpington, Kent will continue to trade under its name but it will be rebranded at some point in the future.

"It's a clich, but we are now truly a total service provider," said DPS technical director David Laybourne. "With Stralfors continuous forms presses in Redruth, Cornwall we'll have a competitive edge, and from its point of view there's our data processing and personalisation skills and equipment."

DPS equity owners chairman Tony Hayday and finance director David Carter will leave the firm after a handover period. Fellow equity holder managing director Grant Bloomfield (pictured) will continue at DPS, as will the rest of the management team.

"It's a win-win move for all of those involved," said Bloomfield.

Hayday and Carter will continue to run sister firm, data processing software provider cygnus, which wasn't included as part of the sale.

Stralfors UK is part of the 222m (SEK3.1bn) turnover Swedish communications group Stralfors, which has operations in 12 countries and employs 2,000 staff.

"The UK is the biggest single market in Europe [for DM and transactional mail] so we hope with this base we can compete for the big contracts and grow organically," said Stralfors president and chief executive Per Samuelson.

The firm hasn't ruled out further UK acquisitions once DPS has bedded in.

Stralfors UK
- Clients include Camelot, The National Blood Service
- Staff 120
- Turnover 17m

DPS
- Clients include esure, John Lewis, Onetel and Vodafone
- Staff 124
- Turnover 11m