MMDH will be rebranded under the Faulds Advertising name and the four managing partners - Graham Deakin, Tony Malcolm, Guy Moore and Anna Hutson - will join the Faulds board. All four partners will report to Faulds' managing director, Dennis Chester.
Faulds will position itself as a location-neutral agency and client briefs may be worked on in both offices. Malcolm and Moore will share the title of creative director with Billy Mawhinney, the existing creative director who is based in Faulds' office in Edinburgh.
Since the completion of its management buyout last December, the Scottish-based Faulds has been looking to grow itself by establishing an English base. There will be no redundancies resulting from its acquisition of MMDH, and no client conflict issues.
MMDH's client list includes British Bakeries, VH1 and MTV Networks Europe.
Key Faulds clients are Emap, Auto Trader and Kwik-Fit.
Chester said: "We intend to be collaborative rather than competitive, and rewards will be based on the profits of the whole group, rather than individual offices."
Deakin said: "Faulds has steadily grown to become the biggest regional agency in the UK. Our combined talent and resources give us the critical mass to be a real force in London."