Three firms controlled by Divine Interventures Inc. announced plans Thursday to merge into a single marketing services company and to launch a national search for a chief executive.

The planned merger of Buzz MSP (formerly Buzz Divine), Web Design Group and Westbound Consulting is Divine's first significant deal since it changed its strategy from Internet incubator to consolidator. Rather than investing in start-ups, Divine is looking to roll up companies in a distressed market. The yet-to-be-named merged company, based in Chicago and controlled by Divine, will offer marketing and technology services and likely will compete with the interactive arms of larger marketing agencies.

Sources estimate that the three firms combined generated between $16 million and $18 million in revenue in the last 12 months, with Buzz generating the lion's share. That suggests a combined market value of at least $24 million to $27 million, unless sales have fallen off.

It also suggests that the merger could be good for Divine's shareholders. Divine, which will own more than half the merged entity, has invested about $13 million in the three firms, including $7 million in Web Design, according to Securities and Exchange Commission documents and sources.

Still, it is too early to tell whether the merged firm will thrive,industry observers say. In addition to the normal risks associated with any merger, this combination unites very young firms that took off during a boom and grew quickly. The oldest of the three, Web Design, started about five years ago.

Buzz generated most of its estimated $12 million in revenue last year from dot-coms affiliated with Divine that were spending heavily during the freewheeling days when Divine was flush.

Buzz's founder and former CEO, Karen Andre, had begun to reposition the firm, but it is unclear how far it has come in building a base of more stable clients.

Andre resigned in November in a disagreement with Divine, which owned 80 percent of Buzz. Among the issues in dispute was how much equity Buzz employees would get in the event of a merger such as the one announced Thursday.

Andre was also concerned about layoffs. A total of 35 people will be cut from the three firms, leaving a combined 140, or about the same number they had in March when Divine was investing in them.

The new company will offer traditional marketing services such as public relations and direct marketing, as well as online marketing and technology services.