Twitter announced it has entered a "definitive agreement" to be wholly owned by Elon Musk.
The social media platform confirmed the news through a press release Monday afternoon.
The purchase is valued at about $44 billion.
Once the transaction is completed, Twitter will become a privately held company.
Musk said last week that he had lined up $46.5 billion in financing to buy Twitter, putting pressure on the company’s board to negotiate a deal.
The New York Times cited people with knowledge of the situation who it did not identify.
Twitter shareholders will receive $54.20 in cash for each share, according to Monday's announcement.
"Free speech is the bedrock of a functioning democracy, and Twitter is the digital town square where matters vital to the future of humanity are debated," said Musk.
The transaction is expected to close by the end of the year.