Oxford's premier live music venue The Zodiac has been sold to a major national club chain, ending months of speculation over its future.

The Cowley Road club, which has remained fiercely independent for 11 years, has been snapped up for an undisclosed fee by the Academy Music Group (AMG) - which owns a string of large venues, including London's Shepherds Bush Empire, and Carling Academy venues in six cities.

The Zodiac has become one of the group's three so-called Bar Academy sites, along with venues in London and Birmingham. The club will continue to be known as the Zodiac for the time being, though will inevitably be branded an Academy in the long term.

The Zodiac was set up by musicians Nick Moorbath and Adrian Hicks in 1995 and has hosted gigs by everyone from The Killers and Razorlight, to Oxford legends Supergrass and Radiohead - members of whom once had a financial interest in the club.

The Zodiac's new owners insist, however, it will be business as usual, with the venue continuing its role as a focal point for new music.

It is also thought that the deal will pave the way for a planned refurbishment and extension programme, which would see the creation of a new bar at the front of the building, an expanded 900-capacity downstairs venue and a stylish seating area upstairs.

Although AGM refused to comment on the expansion plans, it is thought the revamp could begin as early as next year.

The sale was welcomed by AMG's chief executive John Northcote - a former Oxford resident who began his career running Sunshine Records in Little Clarendon Street.

He said: "I know just how important venues such as the Zodiac are to both the local and national live music circuit, and we plan to work closely with promoters and agents to continue to build upon the Zodiac's reputation."

Former joint owner Mr Moorbath said: "After 11 years running and building up the Zodiac, Adrian and I feel it's time to move on. It has always been important to me that the Zodiac remains a live music venue and that's what AMG are all about."

Mr Moorbath will continue to book bands for the Zodiac, and other venues in Oxford and Reading, alongside the Zodiac's principal promoter, Alan Day of TCT Music.

Mr Day said: "I am looking forward to seeing improvements at the venue, and working with the new owners to continue bringing great bands to Oxford."