Cambridge-based Imerge had closed down, but it now looks as if parts of the business will be saved.
In a statement issued this afternoon, the new owners say: "Imerge brands will continue with current production as well as new product development under the ownership of Prism Sound.
"Customer support will be maintained for all former Imerge customers, including OEM partners Elan, Speakercraft, Xantech and Revox."
Prism adds that it has retained key members of the former Imerge team in R&D, production, customer support and sales. Finance and marketing functions will be taken over by Prism.
Ian Dennis, chief technical officer at Prism Sound, says: "Imerge is a fine example of outstanding technical innovation in the UK and we are proud to take over the baton. We will be concentrating on maintaining the impressive record Imerge has built with innovation in the fast-changing home entertainment market."
Current Imerge products include the MS1-HD Blu-ray media server and MusicM8 audio server.
Prism Sound has 20 years experience working with clients in the pro audio, broadcast TV, radio and music recording industries.