Hipgnosis Songs Fund Limited (LSE:SONG) has agreed terms on a cash offer from Blackstone priced at US$1.30 in cash, equivalent to 104p.
It is up five cents on a second rival offer last week from record company Concord and six cents from a previous Blackstone offer a week ago.
The offer from Blackstone’s newly formed Lyra Bidco puts a US$1.57 billion value on Hipgnosis.
Hipgnosis directors intend to unanimously recommend the deal to shareholders and have therefore withdrawn their recommendation of the latest Concord bid.
Robert Naylor, chair of the Hipgnosis board, said: “Since we started our strategic review, we have been clearly focused on looking at all the options to deliver shareholder value.
"We are delighted that, following competitive interests in acquiring Hipgnosis, our investors now have a chance to immediately realise their holding at an increased premium.”