SiriusXM on Monday announced plans to acquire music streaming service Pandora in an all-stock transaction valued at around $3.5 billion.

In a news release, SiriusXM said the buy will allow it to "significantly expand its presence beyond vehicles into the home and other mobile areas." Following the acquisition, both services will continue to operate, and "there will be no immediate change in listener offerings," SiriusXM wrote.

SiriusXM said it will benefit from Pandora's "mobile strength, digital presence, and ad capabilities" while Pandora will benefit from its "scale, industry expertise, and financial resources." Purchasing Pandora will make SiriusXM "the world's largest audio entertainment company," it added.

The transaction has been unanimously approved by Pandora's independent directors and SiriusXM's board. It's expected to close in the first quarter of 2019.

"The addition of Pandora diversifies SiriusXM's revenue streams with the US's largest ad-supported audio offering, broadens our technical capabilities, and represents an exciting next step in our efforts to expand our reach out of the car even further," SiriusXM CEO Jim Meyer said in a statement. "Together, we will deliver even more of the best content on radio to our passionate and loyal listeners, and attract new listeners, across our two platforms."

In the long-term, SiriusXM plans to leverage its own content and programming, plus Pandora's free and paid tiers, to "create unique audio packages." The company also expects to take advantage of its existing automotive relationships to bolster Pandora's in-vehicle presence.

They also plan to create a "promotional platform for emerging and established artists, curated and personalized in ways to deliver the most compelling audio experience that connects artists to their fan bases, as well as new listeners."