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Billetts has bought Barsby Rowe for an undisclosed sum in a deal that creates a major player in the auditing market.

The purchase leaves Billetts and its main rival, Media Audits, vying for top spot in the UK auditing business. Billetts now claims to track 38% of the UK’s top 250 advertisers on TV and 37% of their national press expenditure.

In total, the new company will have 138 clients, including Lloyds TSB and Hewlett Packard, British Airways, Heinz, Cadbury and Boots, and a joint turnover of £3.9 million based on the year ending in April.

Chairman John Billett said the merger would allow the company to grow. “The increased scale of the new business will give us a superior balance of skills and resources, which will greatly strengthen our market position,” he said.

The combined business will retain all the existing offices and brand names, with Billetts and Barsby Rowe continuing to compete for business.

Back office functions such as finance, administration and procurement will be shared and both businesses will have access to combined research. The company is set to increase its spend on research and modelling.

Under the new structure, John Billett becomes chairman of holding company BCMG, Andy Perch remains managing director of the Billett Consultancy, Hugh Lindsay takes the same role at Barsby Rowe, with Pat Barsby becoming chief executive of Billetts International. The success of the structure will be evaluated in two years’ time when Barbsy’s earn-out period ends.

Billett said the key to the success of the merger would be the group’s ability to sell a wider range of services to its existing clients and also to expand its position internationally. Billetts plans to continue to pursue its international strategy of forming alliances and partnerships with local operations.