Italy’s leading distributor and film production company Medusa and Canada’s Alliance Films have inked a multi-territory deal to cooperate on acquisitions and co-productions.

Announced in Rome Thursday, the cross-Atlantic pact allows the production and distribution power houses to enjoy increased leverage with  regards to acquisition/distribution deals.

Medusa Head of Acquisitions Faruk Alatan, who brokered the deal, told Screen International, “The deal will allow the companies to act together. When there is a big picture, we can be stronger than just one company,” he said.

It also allows Italy to have partnerships, via Alliance with two European based Alliance owned distribution outfits: Momentum Pictures in the UK and Aurum Producciones in Spain. “It gives us the chance to purchase pictures that may be good for Spain and Italy although not for Canada and UK – it’s a very open deal.”

In regards to production, the deal reaps the benefit of already in place co production treaties between Italy and Canada, Italy and the UK as well as Italy and Spain allowing the film giants to jump in on the financing end.

 “If all four of us like a project, we can get involved in the production aspect as well, but it is an open ended deal – a gentleman’s agreement to do things together,” he said.

“For smaller pictures, if we believe in the picture all four of us can finance it together, and buy a piece of the action in that way,” he says.

While each company responsible for the distribution of product in their respective territories, Alatan says, there will be “no obligation” to distribute each other’s product, but that it will create an on going exchange of information between Medusa and Alliance, Momentum and Aurum Producciones.

Alliance Film president Victor Loewy and CEO of Medusa Giampaolo Letta signed the deal for which negotiations were handled by Faruk Alatan, head of acquisitions for Medusa and Charles Layton with Victor Lowey for Alliance.

Alatan told Screen International he began talks with Alliance at Berlin’s EFM earlier in the year and concluded talks during the AFM.