It will now trade as Aukett Swanke.
SHCE has offices in London, Moscow, Istanbul and Sheffield and 95 staff. The two companies together will have 340 staff in eight countries and annual revenue of £16m.
The two companies' studios in London and Moscow will be merged.
In the year to 31 December 2012 SHCE made a pre-tax loss of £560,000 on revenue of £6.4m, though it has traded profitably during 2013 and is virtually debt free.
SHCE is the European arm of US firm Swanke Hayden Connell Architects whose heritage dates back to 1906 when Walker & Gillette was founded in New York City. A branch office of SHCA was established in London in 1989 with a subsidiary in Istanbul in 1996. This was followed by the purchase of George Trew Dunn of Sheffield in 2002 and the establishment of a Moscow branch in 2005. SHCE was acquired by its current management via a management buy-out from SHCA in November 2005.
SHCE chief executive David Hughes becomes deputy chairman of the merged group. SHCE principal interior design director Nick Pell has also joined the board as an executive director.
CEO Nicholas Thompson said: "The combination of AFR and SHCE under the ‘Aukett Swanke’ brand will significantly enhance both firms' reputations in the market place and enable us all to deliver an ever increasing quality of service to our clients in our chosen markets. The two firms make an excellent commercial and cultural fit with complimentary services and client portfolios. The future of the merged entity can only be good for clients, staff and shareholders."