The former home of Gatecrasher on Broad Street will be refurbished to develop a new multi-room venue.
Chief executive Peter Marks said: “We have been keen to have a presence in Birmingham for some time now and are delighted to have acquired this landmark site.
“We are extremely excited to bring PRYZM to the city, which will offer a fantastic clubbing experience with outstanding levels of customer service and headline acts from around the world.”
PRYZM Birmingham will combine multiple dance rooms with the latest in sound and lighting technology, together with luxury VIP booths, table service and bespoke bar experiences.
The venue will be part of The Deltic Group which operates 58 bars and clubs across the UK, employing over 3,000 people.
It is scheduled to open in the summer.