Shareholders will be paid $207 million.
Under the deal, Hefner, 84, will own 37 percent of Playboy Enterprises. Rizvi Traverse, the investment firm that made the deal possible, will have a 60 percent stake.
Playboy Magazine has struggled in recent years, facing competition from adult content on the Internet.
There have been several rounds of layoffs in the past few years.
Hefner remains editor-in-chief and chief creative officer of Playboy.
The Associated Press contributed to this report.