Nov 9 (Reuters) - Unity Software Inc (U.N) will buy Weta Digital, a visual effects (VFX) studio known for its work in movies such as "Godzilla vs. Kong" and "Avatar" in a $1.63 billion cash-and-stock deal, the companies said on Tuesday. The deal is expected to close next year and would help Unity, which makes software for video games and animation, tap into Weta Digital"s technology and talent to develop VFX tools and focus on metaverse opportunities.Weta Digital"s Academy Award-Winning VFX team will remain a standalone entity known as WetaFX and is expected to become Unity"s largest customer in the media and entertainment space, the companies said. Weta Digital was founded by film director Peter Jackson of "The Lord of the Rings" fame and has won several Academy and BAFTA Awards and is known for its animated characters such as Gollum, and Caesar in "Planet of the Apes". Unity shares slumped 9% in extended trading following its third-quarter results.