Foster, who has been managing director at the Basingstoke-based company for two years, along with Doug Nichols and James Abrahart, acquired Document Despatch from its two outgoing, retiring directors. The deal was financed, in part, by The Royal Bank of Scotland.

Abrahart is the chief executive of Altodigital, a £40m business that supplies digital print equipment, software and consultancy services. According to Foster, his involvement will allow both businesses to benefit from the synergies each company brings.

"We are delighted to have completed the transaction and with James’s support, enthusiasm, and the many Altodigital synergies we are confident that we can deliver profitable growth through increased market share offering a high level of service and commitment," he said.

Foster hopes Document Despatch can cross-sell its direct mail and fulfilment services to Altodigital's 12,000-strong client base with Altodigital being able to offer its products and services to the mailing house's blue chip customers.

Abrahart said he was looking forward to developing "further business opportunities" with the directors.

He added: "The management buyout of Document Despatch is a great business opportunity. The outsourcing of document fulfilment is a great fit for the customers and suppliers of Altodigital and has great synergy with our managed print services portfolio."

The company, which was established in 1987, employs 30 staff and currently has a turnover of £3m. It serves clients including those in the travel, local government, and publishing sectors.