Louisiana residents interested in technology may find it interesting to learn that Apple Corporation has recently confirmed they intend to acquire Beats Electronics for an estimated $3 billion. The announcement follows rumors that had been circulating for several weeks about a possible merger between the two companies, each a giant in its respective industry.

Beats Electronics was founded by the rapper turned producer Dr. Dre in 2008. The company is best known for its high end speakers and headphones. The company also sells audio software and operates a subscription service that streams music to registered active subscribers for a monthly fee.

Apple has agreed to acquire Beats for a cash payment of $2.6 billion with an additional $400 million in equity in the form of Apple shares. If the deal is finalized, and pending regulatory approval, it will mark Apple’s largest acquisition to date. Beats Electronics’ principal founders will continue to work at Apple after their company is acquired, in Apple’s iTunes music streaming division.

In order for a business to thrive in a competitive market, merging with another may give the business an edge or an entry into a market they want to enter but cannot on their own. The law governing these deals is complex. Approvals must often be obtained not only from shareholders but from regulatory agencies. It is important for a business planning such a deal to work with a business law firm familiar with such transactions and the many legal and regulatory issues that must be addressed and resolved.

Source: Time, “Apple Buying Beats Electronics for $3 Billion,” Denver Nicks, May 28, 2014