United States-based visual effects company Prana Studios Inc has won the bidding to acquire Rhythm & Hues Studios, the Oscar-winning visual effects and animation company, which filed for bankruptcy protection on Feb 13.

A subsidiary of Prana Studios called 34 X 118 Holdings Inc came in with the highest offer following a two-day auction held in Los Angeles.

The deal is valued at about $17.8 million, including the purchase price and the assumption of loans from Universal and Fox, according to the Hollywood Reporter.

Founded in 2003, Prana Studios Inc has production offices in Los Angeles and Mumbai.

It beat several bidders including Prime Focus, one of India's largest post-production companies and a businessman named Jiang Yanming.

One of Hollywood's most respected visual effects houses, Rhythm & Hues won an Oscar in February for its work on Ang Lee's Life of Pi.