Recruitment agency Staffline (LON:STAF) is buying Northern Ireland rival Diamond Recruitment Group as part of an expansion drive.
Staffline said Diamond, which specialises in temporary and permanent recruitment, would bring several large blue-chip clients based in Northern Ireland as well as local knowledge and an excellent reputation.
The acquisition meets Staffline's aim of expanding geographically and will speed up the growth of its Ireland division opened in 2013.
Diamond provides over 2,000 workers a day from a database of over 59,000 candidates, significantly boosting Staffline's local presence.
Staffline is using existing lending to fund the acquisition, which will be earnings-neutral this year.
Chief executive Andy Hogarth said: "This acquisition fits our strategy of selective bolt-on acquisitions."
Staffline shares rose 14p to 1514p in late London trading.