Albion has been acquired by independent consultancy Fluxx and will be dropping its name.
Jenny Burns, Albion's chief executive, will become executive partner at Fluxx. Burns joined Albion just over a year ago. An additional five people will also join Fluxx at its office in Borough.
The remaining eight staff are leaving the business through a mixture of career breaks and redundancy as Albion closes its office on Central Street in east London.
Fluxx, which describes itself as a "product and service innovation" business, has worked with brands including John Lewis, Thames Water, EE and Condé Nast. Albion has handled brands on a project basis including Ada, Zopa and Bonhams. A spokesman said there will be no client conflicts.
Albion recently created an ad for Thomas Cook about a man who wakes up in a new place everyday.
Founded in 2004 as a "challenger creative shop", Albion later repositioned as a full-service digital marketing agency. It later became a "creative innovation consultancy" as it tested digital products for brands.
In 2014, Albion sold a majority stake to Kirshenbaum Bond Senecal & Partners, which was owned by MDC Partners. In 2016, MDC acquired Forsman & Bodenfors and merged it with KBS, dropping the KBS brand in the process. MDC has now decided to divest Albion to focus on marketing services.
Richard Poole, Fluxx founder and managing partner, said: "With Albion colleagues under the Fluxx brand, we’ll be able to offer more to our existing clients and accelerate our growth into new markets.
"We already share a common culture and history of helping organisations release potential and create market-leading products and services. We’ve worked with Jenny for some years as a client and partnered alongside Albion successfully already, with a feeling of mutual respect for the work we’ve done. This is a natural step to reinforce our unique blend of capabilities for clients."