The deal was announced after a board meeting of Telegraph Group owner Hollinger International yesterday in New York.
The identical Barclay twins, who own The Scotsman and The Business, beat venture capitalist 3i to the prize after a fierce six-month bidding war in which the Daily Mail & General Trust and Express Newspapers owner Richard Desmond also fell by the wayside.
Reports suggest that the Barclay's bid for the group, whose titles include The Telegraph, The Suday Telegraph and The Spectator, beat an offer of around 650m from 3i.
It is as yet unclear whether Desmond will try to take control of West Ferry Printers, which is jointly owned by Telegraph Group and Express Newspapers holding company Northern & Shell, in the wake of the sale.
Under the terms of ownership, a change of control clause gives Desmond 42 days in which to make a bid for the Telegraph Group's 50% share of the printer.
Hollinger International spokesman Jeremy Fielding said: "The trigger for the 42-day clock to start ticking is the completion of the sale, which is scheduled for July 30, and not the announcement."
Reports suggest that Lord Black of Crossharbour, the former owner of Hollinger International, could still challenge the sale.
The Times reported that a source close to Lord Black had said: "This deal is not as good as the $18 a share that the Barclay brothers were prepared to offer for the whole company earlier in the year."
In a statement, Gordon Paris, interim chairman and chief executive of Hollinger International, said: "The Telegraph, The Sunday Telegraph and The Spectator will be in good hands."
Jeremy Deedes, deputy chairman and chief executive of Telegraph Group, said: "This is the first day of a new life for the staff of the Telegraph Group, who have endured months of uncertainty with great resolve."
Aiden Barclay, chairman of Press Acquisitions, the Barclay-owned company which has bought the Telegraph Group, said: "We are delighted to have reached agreement for the purchase of the Telegraph Group and to have ended the uncertainty surrounding its future."
Aside from their newspaper interests, the bulk of the Barclay brothers' empire is based on the Littlewoods catalogue shopping chain and the Ritz hotel in London.
Story by Josh Brooks
