Google announced it will pay $1.1 billion to acquire HTC’s team of nearly 2,000 engineers who are currently working on the Pixel smartphone.
The two entities have signed a separate agreement, which will give Google a non-exclusive license for HTC intellectual property.
“As a pioneer of the smartphone market, we are very proud of our history of innovation. Our unmatched smartphone value chain, including our IP portfolio, and world-class talent and system integration capabilities, have supported Google in bolstering the Android market,” said Cher Wang, Chairwoman and CEO of HTC. “This agreement is a brilliant next step in our longstanding partnership, enabling Google to supercharge their hardware business while ensuring continued innovation within our HTC smartphone and VIVE virtual reality businesses.”
Google’s Senior Vice President of Hardware, Rick Osterloh, wrote in a blog post that these deals will help expand the company’s Made by Google products, which were introduced last fall and included Google Home, Google WiFi and other products.
“With this agreement, a team of HTC talent will join Google as part of the hardware organization. These future fellow Googlers are amazing folks we’ve already been working with closely on the Pixel smartphone line, and we’re excited to see what we can do together as one team,” Osterloh wrote.
The next generation of Made by Google products will be unveiled on October 4.
The deal is awaiting regulatory approval but should close by early 2018.