British visual effects company Framestore, which is famous for its contributions to films like Gravity, the Harry Potter franchise, and Doctor Strange, has agreed to be taken over by China's Cultural Investment Holdings Co. in a nearly $187 million deal.

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Under the deal, the Cultural Investment Holdings will acquire 75 percent of Framestore's shares. Its management team including founder William Sargent will remain in position and retain a minority stake, according to the Sky News.

"Partnering with CIH positions us both creatively and financially to be the leaders in the world of story-telling across all visual platforms," Sargent told Sky News.

"This builds on our strength in Europe and North America, and will accelerate our move into the exciting Chinese market, as well as open up other rapidly expanding markets in Asia."

Malaysian sovereign wealth fund Khazanah Nasional is one of the Framestore shareholders that will sell their stakes. The government investment fund acquired 30 percent of the Oscar-winning creative studio in 2014, according to the Deadline.

Once completed, this will mark another Western company to be taken over by a Chinese firm. Last Friday, Chinese entertainment giant Wanda Group has officially closed its deal to buy Golden Globes awards maker Dick Clark Productions for an eye-popping $1 billion. The company also recently acquired Legendary Entertainment for $3.5 billion earlier this year.

Framestore employs 1,400 workers and has established headquarters in Los Angeles, New York and Montreal, the Variety noted. Its deal with the Cultural Investment Holdings Co. is still subject to regulatory approval, an insider with knowledge about the matter said.

TagsFramestore, Framestore VFX, Visual Effects studio, Cultural Investment Holdings