Will Whitehorn (pictured), chairman of Loewy, said Prescient was sold “as its work and clients were not core”. Andrew Sawkins remains as managing director of Prescient, according to the firm’s website.

The sale of Loewy to Writtle was an all-share deal. Existing shareholders in both companies have also raised £4.5m of new capital to fund further growth.

Loewy owns Epoch Design, Seymour Powell, Speed Communication, The Team and Williams Murray Hamm. Writtle’s portfolio of businesses include 20/20, Arken, Beyond Communications, Creo Retail Marketing, Maglabs and Magnet Harlequin.

Writtle chairman and chief executive Robert Essex said: “It is rare to find such a complementary mix between two marketing services groups. We will combine Loewys renowned and excellent operating companies with Writtle’s business model of decentralised growth and equity involvement for key directors to fuel further growth. It is a strategy that has served us well to date.”

Whitehorn added: “As marketing services continue to develop at the same rapid pace as digital technologies and social media, we believe that the winners be those organisations in the industry that can invest for the future while remaining entrepreneurial in their outlook.”