Montreal: u.s. software giant Microsoft Corp. has acquired Montreal animation software producer Softimage in a share exchange deal worth an estimated $130 million.

A spokesman for Microsoft’s advanced technology division says the company wants Softimage to remain in Montreal, and is committed to investing $30 million in Softimage’s 3D Creative Environment package, its Digital Studio post-production package and other new products.

In a prepared statement, Microsoft says the acquisition will help it develop animation, games and interactive software for the highly touted information superhighway.

In 1993, Softimage reported revenues of about $28 million, up from $14 million the preceding year. However, much of the 1993 sales increase was due to earnings from the sale of expensive hardware packages, and the company’s net earnings and share price actually dropped significantly in the last quarter.

Each share of Softimage stock will be exchanged for 0.279 shares of Microsoft stock.

Softimage has secured an international reputation for its user-friendly 3D animation software, which was used in the hugely successful theatrical movie Jurassic Park.

The Montreal company was founded in 1986 by its chairman, Daniel Langlois.