Promotion Space Group purchased Brandspace with backing from Octopus Private Equity, which first invested in the acquirer in April last year.

Senior debt for the deal, in the form of a term loan, was provided by Lloyds TSB’s Manchester office. Financial details were not disclosed.

According to Octopus, the acquisition creates ‘a clear market leader in the sector, with a strong national presence’. Paul Soanes, MD of Brandspace, will take a seat on the merged company’s board as group business development director.

The deal was led for Octopus by associate director Richard Taylor. The acquirer was advised by corporate finance house Ford Campbell and legal firm Cobbetts, while financial due diligence was completed by accountancy firm BDO Stoy Hayward.

Promotion Space Group organises brand awareness campaigns and sales promotions in shopping centres for clients including Sky, Barclaycard and EDF Energy. It also helps malls make fuller use of their available space by setting up kiosks operated by local traders.

Brandspace offers a number of established relationships with sites including Covent Garden and St Pancras Station in London, and 42-acre shopping mall Liverpool One, which is due to open later this month.