London advertising firm DraftFCB has picked up independent creative agency Inferno. The takeover deal could value Inferno by as much as £20 million, according to Campaign Live.

The said transaction is thought to be inclusive of an £11 million initial payment. The total value of the deal could climb to as much as £20 million upon completion of the earn-out, the report explained.

Under the terms of the deal, Inferno chairman Frazer Gibney will manage the combined company. Inferno founding parter Tim Doust and chief creative officer Al Young will retain their roles after the merger. Ahead of the said deal, DraftFCB executive creative director David Harris and London president Kate Howe resigned, the report detailed.

The merged entity will temporarily operate under the name Inferno & DraftFCB until the mangement comes up with a new name in February. Doust said the transaction matched with Inferno's goals of working with global brands, Campaign Live reported.

Doust added: "I thought this was a good idea because we call each ourselves a 360 agency and we're very good at the creative work and winning pitches, but there's something that's been missing - the CRM and data stuff. Now, that's in place."