Canadian-based e-reading service Kobo Inc will be acquired by Japan's Rakuten Inc for $315 million, the companies said in a release on Friday.

Rakuten, an Internet services and e-commerce company, intends to acquire all issued and outstanding shares of Kobo for cash.

Kobo was founded by Toronto-based Indigo Books & Music Inc and spun off in late 2009. Indigo is still Kobo's majority shareholder and said it expects to get about $140 million to $150 million from the sale.

The company's service are available on Kobo-branded e-readers as well as other devices, including Samsung's Galaxy Tab and Research In Motion's PlayBook.

(Reporting by Allison Martell; editing by Rob Wilson)