New York—Peppercom, a strategic communications firm, announced the acquisition of H2O Associates, an interactive and creative services agency. Both agencies are based in New York. Under the acquisition, H2O will become part of Peppercom and will expand the agency's interactive services. Jason Dodd, founder and president of H2O, has been named creative director at Peppercom and will serve on the agency's management team. Financial terms were undisclosed.