The Foundry, a visual effects software provider backed by Carlyle, has merged with US-based technology company Luxology.
The Foundry's technology is used on television and film sequences. Recent examples include Hugo, which won an Oscar this year for its visual effects, as well as Rango and Boardwalk Empire. Over the last few years, the company has secured partnerships with Disney, Sony Pictures Imageworks and Weta Digital.
Luxology has created a 3D software package that is used by artists for animation, modelling and rendering.
Hollywood trade magazine Variety reported that the merger was prompted by John Knoll of Industrial Light & Magic, who suggested both offerings would work better combined.