Sports management and marketing company Proactive Sports has acquired a County Durham rival in a £1.88m deal.

Fox Sports, based in Durham, already represents several top Premier League clubs and also provides marketing solutions for athletics and rugby.

Its clients include Arsenal, Aston Villa, Middlesbrough, Newcastle and Sunderland football clubs, as well as Northern Rock, Base London, LDV Vans and the Nationwide Building Society.

The deal is expected to increase Proactive's range of services, particularly in the football arena. It represents Newcastle players Jermaine Jenas and Hugo Vianni, and employs more than 67 staff.

Jim Foxcroft, managing director of Fox Sports Limited, which has an annual turnover of £3m and employs seven people, said: "The business has been independent for 25 years and has grown significantly in that time.

"However, to move to the next level we need to be part of a larger group with greater infrastructure and international reach."

He said: "Proactive have interests in sport all over the world which gives Fox Sports access to both new markets and new clients.

"We can offer a more extensive range of services and being part of the enlarged group will be invaluable in increasing our market share."

Proactive Sports chief executive, Paul Stretford, said: "This is the second deal we have concluded this month.

"Last week we announced that we had expanded and enhanced our football representation business and the acquisition of Fox Sports shows that we are intent on building upon the success of our sports marketing division."

He said: "The acquisition of Fox Sports is an extremely good fit for Proactive. It extends the range of services offered by the group, increasing penetration in the football arena whilst also broadening the scope of the group's activities into other sports."