Buyer Drahi is a long-time client of the company

Auction house Sotheby's has agreed to a takeover by telecoms billionaire Patrick Drahi, in a deal worth $3.7 billion.

The company will now return to private ownership after 31 years as a public company traded on the New York Stock Exchange.The price being paid is a 61 percent premium to Sotheby's closing share price on Friday.

Media and telecoms entrepreneur and art collector Drahi, who is also the founder of telecoms group Altice, said: "I am honored that the board of Sotheby's has decided to recommend my offer."

The 55-year-old added, "Sotheby's is one of the most elegant and aspirational brands in the world. As a long-time client and lifetime admirer of the company, I am acquiring Sotheby's together with my family."

The deal is subject to approval from the company's shareholders and clearance from regulators but is otherwise expected to become effective in the fourth quarter of this year following shareholder approval.

Tad Smith, Sotheby's CEO, said: "Patrick Drahi is one of the most well-regarded entrepreneurs in the world, and on behalf of everyone at Sotheby's, I want to welcome him to the family ... This acquisition will provide Sotheby's with the opportunity to accelerate the successful program of growth initiatives of the past several years in a more flexible private environment. It positions us very well for our future and I strongly believe that the company will be in excellent hands for decades to come with Patrick as our owner."