Byju's, India's biggest online education startup, has signed an agreement to acquire Aakash Educational Services Pvt Ltd for $1 billion, according to Bloomberg report.

Backed by Blackstone Group of the US, Aakash Educational Services runs the popular Aakash Institute network of nationwide private coaching centres that help students crack the engineering and medical college entrance exams.

The report states that the deal will be closed in the next two or three months with Aakash's founders, the Chaudhry family exiting the venture. Blackstone, on the other hand, is expected to swap a portion of its 37.5 percent equity in Aakash for a stake in Byju’s.

However, neither Byju's nor Aakash Educational Services have commented on the report..