L’Oréal has acquired Canadian augmented reality and artificial intelligence focused beauty company ModiFace to bolster its digital capabilities.

The beauty giant, which owns retailers including Nyx and Urban Decay, has purchased the tech firm for an undisclosed sum.

ModiFace has developed a raft of beauty technology initiatives around 3D virtual make-up and skin diagnosis since its launch in 2006.

The business has also become the go-to business for beauty brands to develop their augmented-reality technology and has worked with firms including Smashbox, Sephora and Estée Lauder.

L’Oréal’s purchase of the company is the latest in a series of moves to up the beauty behemoth’s digital prowess.

The firm has invested in start-up platform Founders Factory and developed its own augmented-reality app to allow shoppers to virtually test its cosmetics called Makeup Genius.

L’Oréal’s chief digital officer Lubomira Rochet said: “We are thrilled to welcome ModiFace to L’Oréal to become the heart of our digital services research and development.

“With its world-class team, technologies and sustained track record in terms of beauty tech innovations, ModiFace will support the reinvention of the beauty experience around innovative services to help our customers discover, try and choose products and brands.”

ModiFace founder and chief executive Parham Aarabi added: “L’Oréal’s acquisition of ModiFace provides an incredible opportunity to innovate on beauty augmented reality and artificial intelligence at an unprecedented scale, the results of which will shape the beauty industry for decades to come.”