The animation studio is to “focus on development of visual content utilising Nintendo IP” and the “planning and production of visual content including CG animation.” This will include motion capture work on 'Death Stranding' and 'Persona 5', plus post-production work on other titles.
The acquisition is due to finalise on October 3rd, 2022.
Meanwhile, Chris Pratt is set to voice Mario in the eagerly-awaited 'Super Mario Bros' movie.
The Hollywood star will lend his vocals to the part of the iconic Italian plumber in Nintendo's forthcoming film - based on the legendary video game series - and Charlie Day will star as Mario's brother Luigi.
Anya Taylor-Joy has been cast as Princess Peach, and villain Bowser will be voiced by Jack Black.
Other big names who will lend their vocals to animated parts include Seth Rogen as Donkey Kong, Keegan-Michael Key as Toad, Fred Armisen as Cranky Kong, Kevin Michael Richardson as Kamek, and Sebastian Maniscalco as Spike.
Aaron Horvath and Michael Jelenic will direct the movie, and Matthew Fogel has penned the script.
Announcing the cast at streaming event Nintendo Direct, producer Chris Meledandri said: "Mario and Luigi are two of the most beloved heroes in all of popular culture, and we are honoured to have the unique opportunity to work so closely with Shigeru Miyamoto and the widely imaginative team at Nintendo to bring these characters to life in an animated movie, unlike any film Illumination has made to date."