Health Assured, part of Peninsula Business Services Group, has acquired Capita's employee assistance programme business, formerly called First Assist.
Both provide 24/7 counselling support and information directly and through additional services, Health Assured is based in Manchester.
David Price, director of Health Assured said: "We have the infrastructure in place to successfully integrate this business, and our aim is to take the best of both operating models and propositions to create an enhanced market leading offering."
"This acquisition is really exciting for us, and we believe that the scale, experience and passion of our two businesses combined will really set the market alight!"
Peter Done, group managing director of Peninsula Services Group, said: ‘The acquisition is a natural fit for Health Assured as it builds upon our existing strengths in the health and wellbeing market and supports our ambitious growth plans, moving more into the large corporate and insurance space.
"On behalf of our management team, I'd like to thank Capita for its support and dedication that has enabled us to ensure a smooth and successful transaction."