The Cupertino tech giant said Wednesday that it will acquire the two companies for a total of $3 billion.
That's less than the $3.2 billion Apple was said to be prepared to pay for Beats when talks leading up to the deal were reported earlier this month, but is still easily the biggest acquisition in the company's history.
Beats, which is headquartered in Culver City, was founded by music mogul Jimmy Iovine and hip-hop star Dr. Dre in 2008, and is best known for its premium headphones. It launched the subscription music service Beats Music as a separate entity in January.
"Music is such an important part of all of our lives and holds a special place within our hearts at Apple," said
The deal consists of about $2.6 billion in cash and $400 million in stock and is expected to close later this year. Iovine and Dr. Dre, whose given name is Andre Young, will join Apple.