A 16-vehicle bus and coach operator based in Cheltenham is set to begin operating in Oxford.
Swanbrook Transport, a third-generation family-owned business founded in 1960, has been acquired by the Go-Ahead Group.
The firm operates local bus services, home-to-school routes, and private hire, and will now become part of Pulhams Coaches, which is part of Go-Ahead's Oxford division.
Luke Marion, managing director of the Oxford Bus Company, said: "Pulhams Coaches already has an excellent reputation in the Cheltenham area as both a local bus operator, and as specialist providers of coach services.
"Our acquisition of another reputable operator in the area in Swanbrook is an exciting opportunity to provide an even greater range of services locally and integrate it with our existing network."
John Thomas, operations director of Swanbrook Transport, added: "We are excited by the opportunities that joining such a prestigious group in Pulhams/Go Ahead will bring to the company.
"Having established our business as a well-respected operation in the local area, we believe this is the natural progression for the business to further develop and be well equipped to meet the challenges of the industry for the future."
The acquisition is part of Go-Ahead's recent expansion across England, which includes four coach companies in West and North Yorkshire, and the North East.
This makes Go-Ahead one of the largest coach operators in the UK, with more than 400 coaches.
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