The deal will see Lucid's two principals, Caroline Wagstaff and Ruth Starling, become directors and shareholders in the newly enlarged business.
Lucid's long-standing clients include leading players in the Lloyd’s of London insurance market, multinational corporate and marine insurance businesses and top tier professional services firms. Lucid's team in London will move to Luther Pendragon's offices in Ludgate Hill.
Simon Whale, managing director at Luther Pendragon, said: "The last few years have shown that firms in the financial and professional services sectors have an increasing need to promote their services and defend their reputations. Lucid have that expertise in depth and will add great weight to our credentials in this area."