Guitar Center Inc. said it agreed to be acquired by private equity firm Bain Capital Partners LLC for about $2.1 billion, including assumed debt.

Under the terms, Guitar Center stockholders will receive $63 in cash for each share held, the musical instruments retailer said in a statement.

The offer represents a 26 percent premium over Guitar Center's closing price on Tuesday.

The transaction is expected to close in the fourth quarter, the company said.

Goldman Sachs served as a financial advisor to the company on the deal.

Reuters had on May 29 reported that there were speculations in the market that the company was exploring a possible sale and had hired an investment bank to explore strategic alternatives.