Discreet Logic has announced an agreement to buy Lightscape Technologies of San Jose, California, the producer of an advanced Microsoft Windows-based realtime rendering and lighting software technology primarily used in the creation of virtual sets.

The Lightscape application integrates the cg technologies of radiosity and ray tracing with physically based lighting conditions and significantly expands the quality product range of various Discreet systems, specifically VAPOUR, the Montreal software company’s 3D Virtual Studio solution, says president and ceo Richard Szalwinski.

A substantial portion of the us$3.8 million to us$4.3 million purchase price will be charged to the company’s fourth-quarter R&D costs.

Discreet says the purchase price includes approximately us$4.5 million in debt, of which us$3 million will be paid at closing, expected later this month, and up to us$6.8 million based on Lightscape revenue objectives in calendar ’98/99.

Discreet acquisitions this year include Delaware-based Denim Software, a paint and compositing system developer, and D-Visions Systems, an Illinois-based nonlinear editing system producer.

Currently trading on the NASDAQ National Market in the us$18.50 range, Discreet reported a net loss of US$6.7 million based on top-line revenues of us$101.9 million for the 11-month reporting period ended June 30.

Discreet recently consolidated its entire head office operations at 10 Duke Street in Old Montreal.

At Malofilm, where Szalwinski is chairman of the board, shareholders have approved the company’s name change to Behaviour Communications.

Under the Behaviour name, the Montreal company will consist of distinct and complementary divisions. Behaviour will encompass design, production, distribution, publishing and digital technology services.

Shares will continue to trade under the symbol MFM.A and MFM.B for about one week before changing to BHV.A and BHV.B.