The film, which charts the offbeat sex lives of five suburban couples, was directed by Australia's Josh Lawson.
"The Little Death is a terrifically funny film that elegantly walks the line between a shockingly funny sex humour and a warmly affectionate look at adult relationships," said Magnolia president Eamonn Bowles in a statement.
The film was a hit at the Toronto film festival where it premiered, and has sold strongly for Danish sales agency LevelK. U.S. rights were handled in association with UTA.
Magnolia expects a 2015 release. The film releases in its native Australia this week through Hopscotch / eOne.
It is the second Australian feature picked up by Magnolia in a week. It earlier bought the Kriv Stenders directed thriller "Kill Me Three Times."
LevelK announced recent sales of "Little Death" film to California Films for Latin America, Apex for Korea, M2 for Poland and Cirko for Hungary. It previously completed sales for Germany, Switzerland and Austria (WeltKino), France and Spain (Wild Bunch), the U.K. (Kaleidoscope). It was also picked up for Greece (Seven Films) and Taiwan (Joint Entertainment).
It stars an ensemble of up-and-comers, including Damon Herriman ("The Water Diviner"), Bojana Novakovic ("Burning Man"), Kate Mulvany ("The Great Gatsby") and Josh Lawson ("House of Lies").
"The Little Death" was produced by Jamie Hilton, Michael Petroni and Matt Reeder for See Pictures. Phil Hunt, Compton Ross, Josh Pomeranz, Viv Scanu and Stephen Boyle exec produced. The movie was financed by Ticket to Ride in association with Head Gear Film, Screen Australia, Night Kitchen Productions, Red Apple, Spectrum Films and Metrol Technology.
Watch the The Little Death trailer below: