The deal is worth £8m and sees DPS Direct Mail chief executive Tony Hayday and financial director David Carter step down, with Carter retaining a consultancy role.
The rest of the management team, including Grant Bloomfield as managing director and David Laybourne as technical director, will remain unchanged.
Mike Murphy, currently managing director of Stralfors UK, becomes group managing director.
Stralfors has been operating in the UK since 1980 and is based in Redruth, Cornwall. Its heritage is in IT-based transactional services for clients such as The National Blood Service, Camelot and DVLA.
The DPS acquisition will bolster the company's services in the DM arena.
DPS specialises in integrated customer communications including data processing, print and personalisation. "It has the transactional angle and we have the marketing and business communications angle," says Laybourne. "As a group, we will now be able to deliver a single solution."
DPS will continue to operate out of its Orpington offices in Kent and the DPS brand will be absorbed under the Stralfors identity over time.
No redundancies have been made among the company's 124 staff and it expects to recruit new staff next year.
Stralfors currently operates in 12 countries with 1,900 staff and is quoted on the Stockholm Stock Exchange.