Pandora has announced that it is set to acquire several "key assets" from Rdio. The new acquisition will help the online radio company expand its existing model with a view to taking on competitive music streaming services such as Apple Music and Spotify.

The purchase price has been confirmed at $75m (£49.4m, €70.3m) in cash and the deal would result in some upgrades to the existing Pandora experience by late 2016. The Oakland, California-based company is in plans to offer various roles to many members of the Rdio team in addition to acquiring its technology and intellectual property. However, the operating business of Rdio will remain unaffected by the new deal.

"We are defining the next chapter of Pandora's growth story," said Brian McAndrews, chief executive officer at Pandora, in a press release. "Adding live music experiences through Ticketfly was a transformative step. Adding Rdio's impressive technology and talented people will fast-track new dimensions and enhancements to our service. I couldn't be more optimistic about Pandora's future and the future of music."

Pandora confirms that the transaction "is contingent" upon Rdio seeking bankruptcy protection. Moreover, Rdio will be winding down the Rdio-branded service in all markets upon approval of the proposed transaction by the bankruptcy court.

"The Rdio team built an acclaimed product and technology platform that has consistently led innovation in the young streaming industry. I'm pleased that many members of the Rdio team will continue to shape the future of streaming music, applying our tradition of great design and innovative engineering on an even larger stage with Pandora," Anthony Bay, chief executive officer of Rdio, said in the release.

Rdio, in a separate blog post, reveals that its music streaming service "will not be interrupted" by the new move. It said it would continue to remain unchanged for all existing users. The company is not in development to transfer its entire business to Pandora though the acquisition would make things difficult for competitive music streaming services.

Apple Music already has a strong presence on iOS, and is also swiftly moving towards Google's Android. Likewise, Spotify has over 75 million listeners as of June, making a listener base comparable to Pandora's 78 million listeners.

This isn't the first time that Pandora has taken a giant step to bolster its existing business. In October, the company announced the acquisition of online ticketing agent Ticketfly for $450m that will help music listeners buy concert tickets using Pandora apps.

The acquisition has not resulted in any positive response from Pandora's shareholders as its share price grew only 0.22% to $13.45 in after-hour trading on Monday (16 November).