Marketing services and print group St Ives, which has its direct mail business in Bradford, has bought search engine optimisation and digital marketing agency Branded3 Search for £10.7 million in cash and shares.

Branded3 employs 50 staff in Leeds and London and the deal is part of St Ives’ strategy of creating a complementary range of digital and marketing services. The agency serves clients in sectors including entertainment, finance and travel.

St Ives could also pay up to £14.3 million more, depending on Branded3’s financial performance between 2014 and 2016. Branded3 will operate as a subsidiary of St Ives from its existing locations and continue to be run by the management.