Two Birmingham agencies have undergone a merger.

HDY and Orb have joined together to create a new company called Lunar, bringing together services such as branding, performance marketing and sales under a single banner.

The undisclosed deal is backed by Elonex, the Birmingham-based manufacturer of large-scale digital advertising screens.

Digbeth-based HDY launched more than five years ago since when it has worked with clients such as Severn Trent and Birmingham Airport. Its founder Ed James will now serve as a founding partner at Lunar.

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Edgbaston branding agency Orb has been in business for more than two decades during which time it has built up a global portfolio of clients in the healthcare, food and beverage and real estate sectors. These have included beer maker BrewDog and Pension Insurance Corporation.

Founder Rob Bloxham will also be a founding partner in the new group while Orb's partner Jacqueline Tarry is now Lunar's strategy director and partner.

The company's new name has been taken from the city's famous Lunar Society of great thinkers which was founded in the late 1700s.

Mr James said: "Both Orb and HDY are ready to embark on the next stage of growth and doing it together is an opportunity we could not turn down.

"Combined, we have the strength, passion and acumen to become a major player in the UK agency scene. Clients have warmly welcomed this progression and our team looks forward to showing them what we can deliver as Lunar."

Mr Bloxham added: "Lunar will be a full-service brand and marketing agency but we're going to take that definition up a notch.

"In addition to helping our clients build their brands and deliver leads, we'll take responsibility for sales too. Lunar will offer a complete growth engine that today's clients are looking for from their agency partners."

Elonex's chief executive Nick Smith said: "I am thrilled to back these two high-performing, bright and motivated teams.

"This merger presents a really solid opportunity for Elonex to solidify our portfolio of outstanding marketing, media and sales businesses and I'm very excited to see what the future holds."

Lunar will be based in The Custard Factory, Digbeth, and its official launch is scheduled for early next year.