CVS Health has agreed to buy software company Vroom, an acquisition that will make Cisco Systems the third-largest music editing company after Adobe and Apple.
Vroom will acquire the company in a deal valued at $3.6 billion, the company said in a statement.
CVS also said in the statement that the deal will provide a “powerful platform” for Cisco to expand its music-editing offerings.
Vroom, which is based in San Francisco, has created software for the music industry that is used by record labels and music publishing companies to help them manage the digital distribution of their music.
It has a $2 billion valuation.
Vrooms CEO Jonathan Krakauer said in December that the acquisition was an “all-in” deal.
Vrooms chief executive Steve O’Connor said at the time that Vroom would be acquired by Cisco because of its “world-class music-creation tools.”
Cisco declined to comment.
The deal comes at a time when the music-video industry is struggling to compete with the digital world.
In addition to Apple, Vroom also makes software for major record labels like Universal Music Group Inc., Warner Bros. Music Inc. and Sony Music Entertainment.
Voom is a software tool that enables musicians to create music from the ground up, and its users have created more than 50 million tracks, according a blog post.
It is not yet clear whether Voom will become a competitor to Vroom.