TDM, which was bought for an undisclosed sum, will join Scottish marketing agency Leith and market research firm Insight, both also part of Cello's acquisition spree.

Peter Frings, managing director of Target Direct Print, will continue in his role. He said that, despite the move, the new owners would "not change the face of our business and we will maintain our identity".

"The ethos of Cello is about supporting the marketing service that we offer," said Frings. "They very much want us to expand in direct mail."

Frings added that this will be done organically with the possibility of the group making more acquisitions in the future. "Now that we are part of a much bigger group it gives us more stature," he said.

"We intend to build on the strength of the three businesses both organically and by the acquisition of complementary operations, by focussing on their niche areas," said Cello executive chairman Kevin Steeds.

Two weeks ago Cello floated onto the Alternative Investment Market at an estimated value of 23m.

Target Direct Print's core business is in the charity sector but also manages print for clients in travel and financial services. Frings said that the link up with Cello could help the company to expand into other commercial markets.

"It will enable us to push our business boundaries forward for the benefit of our clients," he said.

Cheltenham-based Target Direct Print's client base includes TUI Group, Superbreak, The Salvation Army, and Marie Curie Cancer Care.

This year the firm picked up business from the British Heart Foundation, the Royal National Institute for the Blind and Ethiopiaid.

Story by Philip Chadwick