Commercial broker KGJ Insurance Group has acquired Wolverhampton broker Hallam Green.
The Bilston-based broker said the move forms part of a series of planned acquisitions.
KGJ said it plans to become "a dominant force in the region."
The acquisition raises the commercial insurer's premium income to £15m and staff numbers to 30.
Director Richard Cox said: "Hallam Green is the first of what we hope will be a number if acquisitions in the coming months for KGJ.
"The insurance industry is changing fast and we want to be able to provide a quality service to more people and companies across the Midlands."