Double Negative (DNeg) has merged with Prime Focus World’s creative services subsidiary to create a visual effects behemoth with around 4,500 employees and a combined order book worth £88m.

In a statement, the companies said the deal would create “indisputably the world’s largest independent VFX, stereo conversion and animation company”.

The new VFX business will trade under the Double Negative brand and will be led by DNeg’s current management team of managing director Alex Hope and chief executive Matthew Holben.

DNeg said the deal would enable it to develop into a “truly global operation that provides great work for our clients and great opportunities for our staff”.

Hope said: “Our new relationship with Prime Focus World combines fantastic opportunities to grow our business with the freedom to continue to manage Double Negative in the way we always have: providing a great creative environment for our artists and producing ground breaking effects for our clients.”

In addition to its London and Singapore facilities, DNeg will open a facility in Vancouver before the end of the year.

Prime Focus World is based in Mumbai, India.

“This is a transformational event – both for the companies involved and for the industry,” said Prime Focus founder and chief executive of Prime Focus World, Namit Malhotra.

Malhotra will return to Prime Focus Limited as executive chairman of the board and group chief executive.

“Prime Focus has proven over the last five years the undeniable benefits of global collaboration: the flexibility of working in different time zones, the coming together of creative talent from across the globe and the ability to leverage tax incentives.

“We can now bring this together with Double Negative’s unquestionable creative excellence to build a truly formidable offering.”

Double Negative was established in 1998. It has picked up an Oscar for Inception and two Baftas for Inception and Harry Potter and the Deathly Hallows Part 2.

Prime Focus World’s stereo conversion process has been used on films such as Gravity, The Wizard of Oz and The Last Emperor.

The deal is expected to close “in the coming weeks”.