The joint venture, called Transcontinental Custom Communications, will offer fully integrated relationship marketing services that include database marketing, research, variable printing and photo studio.
Cosmetics industry magazine Look Good Feel Better, which offers health and beauty advice to female cancer patients, has been announced as Transcontinental Custom Communications' first client.
The 64-page magazine has a circulation of 1.5m.
Nina Di Cara from Seven Squared has been appointed as director of Custom Publishing at the Toronto-based operation.
Simon Chappell, director of Seven Squared, said: "We are looking forward to working with North American clients and showing them how customer publishing and relationship marketing has the potential to unlock great value from our customer base."
Natalie Lariviere, president of Transcontinental Media, said: "Combining the experience of Seven Squared with Transcontinental Canadian media expertise will provide best-in-class branded content service to our clients' increasingly global integrated marketing strategies."