The iPhone maker Apple said Wednesday that it has bought Beats Electronics, a music streaming company, for $1.6 billion.
The transaction, which comes a day after the iPhone maker said it sold its stake in Beats to a group led by Chinese tech entrepreneur Li Ka-shing.
Apple said in a statement that the deal includes Beats’ core business, including music and mobile products.
The $1 billion deal is Apple’s largest acquisition to date, and a sign of growing confidence in the company’s ability to keep up with rising technology and consumer demands.
The purchase of Beats comes on the heels of a $1 bill deal that included music and movie rights.
The deal will give Apple a controlling stake in one of the world’s largest music companies.
The new deal also includes a $600 million equity infusion that will help offset the cost of the acquisition.
The company has struggled in recent years as it struggles to stay ahead of new music services and rivals.
The latest iPhone and iPad models also are powered by Apple’s new iOS operating system.
The acquisition comes as Apple seeks to improve its ability to compete in the global music industry.
Apple has been trying to become a more disruptive player in the streaming music business, which has seen a dramatic shift in the past two years as services such as Spotify, Rdio and Pandora have emerged.
Apple and Spotify were valued at $14.6 trillion as of Wednesday, according to FactSet data.
In March, Spotify reported its first-ever quarterly loss of $4.7 billion, prompting a sell-off in shares.
Apple is currently worth $67.5 billion, according the Bloomberg Billionaires Index.