Apple has officially agreed to purchase Beats Electronics, a headphone maker and music streaming provider, for $3 billion, the tech mogul announced Wednesday.

The acquisition will bring with it the expertise of rapper Dr. Dre and recording impresario Jimmy Iovine, both co-founders of Beats Electronics, who will be joining the Apple team once the purchase is complete.

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The massive deal will be broken down into two parts with $2.6 billion in cash and $400 million in Apple stock reportedly to be paid over an unspecified period of time.

According to Apple boss Tim Cook, the deal will allow the firm to stay at the forefront of the industry and help them to continue to create some of the most innovative music products in the world.

Cook went on to say that Apple leaders began the relationship with Dre and Iovine nearly a decade ago and described the solidification of the $3 billion deal as the two companies getting "married".

Apple has decided to make the move due to growing threats to its online store, iTunes. Music streaming services such as Pandora and Spotify have caused the giant to lose in online sales as customers buy fewer and fewer songs and albums.

Last September, Apple broke into the market with iTunes Radio but did not see as much success with the service as previously had been anticipated, according to company sources.

With the acquisition, Beats Music, the music streaming portion of the electronics company, will be bringing with it a customer base of around 250,000 which will help Apple to grow its own numbers as well.

Beats Electronics was started in 2008 by former hip-hop artist Dr. Dre and recording industry executive Jimmy Iovine. Since its founding, it has dominated the luxury headphone market and currently commands 62 percent of the $1 billion U.S. market for headphones priced above $100.

TagsBeats, Dr. Dre, Jimmy lovine