Audi has made an official announcement Wednesday that the auto industry will buy Italian luxurious motorcycle maker Ducati Motor Holding, S.p.A.

The Volkswagen and Audi supervisory boards have already approved the purchase and they are aiming to complete the transaction as early as possible, according to the official statement. Audi's announcement did not disclose the purchase price, but Reuters reported the agreement amount is 860 million euros, which is around $1.2 billion.

"Ducati is known worldwide as a premium brand among motorcycle manufacturers and has a long tradition of building sport motorcycles. It has great expertise in high-performance engines and lightweight construction,” said Rupert Stadler, Audi Chief Executive Officer, in the Wednesday's statement.

With the deal, Audi will join the competition with BMW AG who makes BMW and Husqvarna motorcycles. The purchase will make Ducati the 11th brand in Volkswagen’s portfolio.

“Ducati is a strong brand in a very specialized segment. A bit just like Lamborghini. With the purchase, it will Audi a bit of marketing boost and more profit. But you still have to ask whether there’s not better use for $1 billion,” said Juergen Pieper, an analyst with Bankhaus Metzeler based in Frankfurt, in an interview to Bloomberg.

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