Trafalgar went into administration last year after financial problems with a development in Mitcham, Surrey. After a company voluntary arrangement, in which creditors took stock, it came out of administration last month.
Combe Bank, owned by founders Christopher and Alexander Johnson, currently owns eight residential development sites across Kent.
Under the reverse takeover, Trafalgar has agreed to pay Combe Bank £2.25m, in the form of 87% of the Trafalgar share capital. Shareholders representing 61.5% have already committed to the deal.