DST will focus on what the company calls the "output side" of the business, delivering printed and online communications, while The Lateral Group will focus on "input" and will specialise in data services, customer engagement and creative services.
The rebrand is the culmination of an organisational restructure that has seen the company consolidate its transactional, direct mail and print production facilities.
This process was kicked off last November with the announcement of Lateral Group company Howitt as the sheetfed centre of excellence, which involved moving a 12-colour B1 Cutstar press from IOS' Dagenham site to Nottingham-based Howitt.
In January IOS began consultation with all staff at its Manchester operation, which is understood to employ in excess of 200 people, with a view to the possible closure of the site.
The following month it entered into consultation with employees at its Edenbridge plant over plans to move the facility to Dagenham.
Chief executive Nick Dixon said: "We have been through a restructure in the past six months and we felt that the timing was right to align ourselves with our parent company DST.
"The alignment will ensure we send out a clear and concise message to our clients; having a number of different brands doesn’t send out such a clear message.
DST will now provide services from five facilities across the UK, including Bristol, which specialises in transactional mailings; Dagenham, which focuses on financial services and regulatory communications; Jarrow, which looks after response handling, fulfilment and distribution of printed literature and physical products; Nottingham, which focuses on direct response communication and marketing print; and Peterborough, which handles short to medium-run direct marketing.