Rivington Street Holdings subsidiary Ex Events has bought the Finishing Touch after the agency reported two consecutive trading years with losses of £200,000.
In the year to 30 November 2010, Finishing Touch generated a pre-tax loss of £200,000 on sales of £2.4 million.
Meanwhile, the previous year to the end of November 2009 saw a pre-tax loss of £215,009, down from profit of £300,378 to the end of August 2008.
Ex Events director David Taylor is part of a four-strong team of former Finishing Touch colleagues who set up the new agency last year.
He was joined by Jo Morgan, Dan Green and Kim Dale and the team has now expanded to 11 following the Finishing Touch takeover.
"The majority of the staff have already joined us here and the other members of staff are in discussion with HR about their roles," said Taylor.
He added the main focus would be to continue with Finishing Touch’s existing clients and said meetings were set up this week.
"Any bad debts in terms of suppliers are being paid immediately to ensure a smooth transition," said Taylor. "Our first and foremost goal is to reassure our current clients of our credit as a company."
As part of the acquisition Mel Atkins, former managing director of The Finishing Touch, has joined Ex Events as chief executive.
Taylor added the agency plans to take on two graduates and will also focus on overseas work, as well as groups wanting to get involved in Olympic-related activity.