The move creates a pre-media production services group covering print and TV with "revenues in excess of 50m" and a "substantial" share of the London advertising production market.

"We are extremely excited to have made this acquisition. The businesses complement each other perfectly, we share a similar range of services and Vertis outsources many of the functions we have in-house so there will be immediate benefits," said Tag chief executive Steve Parish (pictured).

Vertis PRS chief executive Chris Clancey said: "We are delighted with today's announcement and the opportunities provided by being part of Tag. I believe that this offers the best possible future for our staff and clients."

US direct mail and pre-media group Vertis decided to exit the UK earlier this year. Most of its former UK direct mail operations are now part of Howitt.

Tag was rumoured to be the front-runner for PRS, its biggest rival, since Vertis announced its intention to sell its UK operations.

It is Tag's second acquisition in a month. In November it expanded its TV post-production division Smoke and Mirrors with the addition of London firm Red Post Production.