Verizon Wireless will spend more than $2 billion to acquire Beats Electronics, a company that makes headphones that can be worn in the field for long periods of time.
Verizon Wireless CEO Lowell McAdam said in a statement Wednesday that the deal is expected to close by the end of the year.
Beats Electronics will become part of Verizon Wireless, and Verizon Wireless’ wireless service will be integrated into Beats’ technology.
VerifyWireless is a joint venture between Verizon Wireless and Beats.
It includes wireless services such as internet, voice, and video, as well as devices, such as phones and tablets.
VerifiedWireless began operations in January and has over 1,600 employees, including about a dozen executives.
The company has been focused on expanding its wireless coverage area, which has been a focus of the Beats acquisition.
The deal is subject to regulatory approvals.
Beats said it expects to spend about $500 million on the acquisition, which will be financed with proceeds from Verizon Wireless.
The company also announced a partnership with Nike and Adidas, two of the biggest brands in the US sports apparel market.
The Nike deal will pay Beats about $6 billion for about 12 million shares.
Adidas will pay $2 million in cash.
VerifierWireless has a strong presence in the world of wireless, having a strong partnership with Qualcomm and Motorola, among others.
The deal will also create an integrated wireless solution for Verizon Wireless customers.