Leeds-based The Technology Group (TTG) has acquired Hertfordshire company Exchange Comms, taking TTG's turnover to £3.5m and expanding its regional scope to deliver services including hosted VoIP.
A number of Exchange Comms employees have been retained.
To support the acquisition TTG has opened a local office in Welwyn Garden City, adding to existing bases in Leeds and central London operations.
TTG MD Jonathan Marsden said: "The acquisition is the next stage in our ambitious expansion plans to service a greater number of business customers across the UK.
"The synergies between the two businesses, including a mutual supplier that helped facilitate the deal, will result in a seamless integration of the Exchange Comms team and services into the group."
David Mackinnon, former Director at Exchange Comms, added: "The Technology Group were highly recommended to us by a mutual supplier as a forward thinking technology company looking to grow. the time seemed right to slow down and pursue other interests.
"Our customers will see a smooth transition over the coming months supported by our staff who will play a pivotal role in servicing our system maintenance contracts."