Best Buy has agreed to acquire digital music company Napster , in a move to expand its digital music offerings.

Richfield-based Best Buy said Monday it would buy Los Angeles-based Napster for $121 million through a merger agreement, under which Best Buy will acquire all outstanding Napster shares at a price of $2.65 per share in cash. The deal is subject to approval, and is expected to close during the fourth quarter.

Under terms of the agreement, Napster CEO Chris Gorog and the senior management of the company will become Best Buy employees. The company also has 140 employees, and best Buy said it does not foresee any layoffs, and has no plans to move the company’s operations.

The deal will help Best Buy to expand its capabilities in the digital media business, it said, with Best Buy chief operation officer Brian Dunn, commenting, “Over time we hope to strengthen our offerings to consumers, who we believe will increasingly seek devices and solutions that enable them to access their content wherever, whenever and however they want.”

Napster boasts proximately 700,000 subscribers to its Web-based digital entertainment services.