Variety reports that Oren Peli, Jason Blum and Steven Schneider (the group behind Paranormal Activity) have signed a five-picture deal with Canadian distributor Alliance Films. Alliance will finance and produce their low-budget genre pictures.

The first picture in the deal is Insidious, from James Wan and Leigh Whannell (the creators of the Saw franchise). Wan will begin shooting in Los Angeles this spring from a script by Whannell.

Alliance plans to release the films in Canada, the U.K. and Spain. CAA, who put together the deal, is going to work with Alliance in representing domestic rights.

"Paranormal taught us to do more with less, and this fund embodies that model. We are particularly thrilled to kick off the fund with James and Leigh," Blum stated.

Wan said he and Whannell wanted to work with Peli, Blum and Schneider because "of their passion for genre films and having the creative control to make auteur-driven pictures."

"I've known Jason for many years now," offered Alliance president Charles Layton. "While Paranormal may have been an industry surprise, his success is not a surprise at all. We're very pleased to be working with Oren, Steven and Jason now and for the long term."