Guitar Center

(GTRC)

agreed to be acquired by private-equity firm Bain Capital in a $2.1 billion deal, including debt.

Bain will pay $63 a share for the musical-instrument retailer, representing a 26% premium over the stock's closing price Tuesday.

Guitar Center, long rumored to be a buyout target, said its board and management team fully backed the deal.

"Following a comprehensive review process, our Board of Directors concluded this transaction is in the best interests of our Company and our stockholders and it has the full support of the management team," said Chairman and CEO Marty Albertson. "Bain Capital has a successful track record and significant investment experience in the retail industry and we look forward to partnering with them going forward."

Bain has been involved in the acquistitions of retailers such as Toys R Us, Burlington Coat Factory and Michaels.

The Guitar Center deal is expected to close in the fourth quarter.