Local Web development and hosting service Intervations has acquired rival firm Carl Bratcher Internet Services (CBIS).
Products from both companies will be merged as part of the deal, the value of which was not disclosed.
Intervations managing director Jason Fenton said the two companies, launched in late 1996 and early 1997, share similar ideals and are not in a competitive market.
"CBIS is a strong fit with our current business and has a similar culture to Intervations," Fenton said.
"I don't believe we have major competition, because there is not a lot of rivalry in this market.
"We are basically absorbing CBIS into the Intervations [product and client] base which will happen very soon."
Carl Bratcher, CBIS former proprietor, said it chose Intervations from other prospective buyers as it operates on the same standards.
"Intervations was the only company that met the standards we strove to achieve during the 10 years we supplied Internet services," Bratcher said.
"CBIS was built around dedicated client support," he said adding the company spent a great deal of time vetting prospective purchasers of the business.