Leo Burnett USA will purchase a minority stake in Moroch & Associates, according to both agencies.
The $2.7 billion Burnett, headquartered in Chicago, and the $80 million Moroch in Dallas became familiar with each other through work with common clients McDonald's, Walt Disney and Procter & Gamble, officials said.
The agreement will allow Moroch to capitalize on Burnett's global capabilities, including creative and media resources. Burnett will "leverage Moroch's retail expertise, field knowledge and local client relationships," said Burnett USA chief executive officer Linda Wolf in a statement.
Financial terms of the deal were not disclosed.
Moroch will also continue to operate its 20 offices across the U.S., officials said.
"The only real day-to-day changes in our alliance will be improvements to the way we work together," said Moroch chief executive officer Tom Moroch in a release.
Moroch had been shopping for a larger agency partner for some time. The shop and Fahlgren in Dublin, Ohio, were in merger negotiations last year, but a final agreement was never reached.
The Burnett investment caps off a busy year for Moroch & Associates, which recently launched a Hispanic division, La Embajada, to address the burgeoning Latino consumer market.
The first ads from the new division were produced for client McDonald's.
--with J. Dee Hill