Luxottica Group said it will acquire fellow eyewear maker Oakley for $2.1 billion, or $29.30 a share, in cash.
Oakley's board will recommend the offer to shareholders for approval. The deal is expected to close in the second half of this year, pending normal closing conditions.
Jim Jannard, chairman and founder of Foothill Ranch, Calif.-based Oakley, said he is excited that the companies have found a way to join forces.
"Oakley's technology and performance is one of the world's best kept secrets and this partnership should empower our ability to tell our story throughout the world," Jannard said in a statement.
"Oakley will continue to be Oakley but with much greater resources and a platform for realizing the true potential of our brand and company", he added.
Luxottica, based in Milan, Italy, has more than 5,800 optical and sun retail stores worldwide and makes eyewear under brands such as Ray-Ban and Chanel.