Telecoms firm STL has bought out its neighbour Intellion as it looks to strengthen its grip on the market.

The companies, which share the same building in Station Lane, Witney, have merged following the relaxation of a non-competition agreement with Carphone Warehouse, which had acquired STL's fixed lines and calls business for £6m in 2004.

At the time STL focused on its core business of supplying switchboards, cabling and systems, while STL's finance director, Susanna Maxa, set up Intellion to provide telephone lines to STL customers and other clients.

STL managing director Brendon Cross said: "The decision to integrate the two companies is made possible by Carphone Warehouse's relaxation of the agreement, and also Susanna's desire to take some time out and do other things."

All five Intellion staff will transfer to STL and no redundancies are anticipated. STL clients include airports, councils and five F1 Racing Teams.

Mr Cross said: "We have held a shareholding in Intellion since the company was incorporated in 2005.

"It now makes sense for us to reintegrate Intellion so that STL becomes a full-service communications business once again. The relationship between STL and Intellion has always been very strong and the two companies have worked very closely together.

"The integration is already well under way and already we are seeing significant business benefits."

Mr Cross, a former director of Oxford United, set up STL in Oxford in August 1995 at the Oxford Innovation Centre in Mill Street, Oxford, before moving to Swinford Farm, Eynsham, and then to Park House, Witney, in February 2000.

Ntl:Telewest Business, part of the Virgin Media Group, announced that it has completed an investment programme to enhance its network across the Oxford area to support next-generation services. The upgrades are part of a £13bn nationwide investment.