Google today said it has signed a USD 1.1 billion-agreement with smartphone maker HTC under which a section of employees of the Taiwanese company will join the US-based tech giant.
The transaction will help Google strengthen its nascent hardware business, while helping HTC focus on enabling a more streamlined product portfolio, greater operational efficiency and financial flexibility.
The deal includes HTC employees who worked on Google's Pixel smartphone and intellectual property rights, the two companies said in a statement, without disclosing the number of staffers involved.
Google had introduced the Pixel and Pixel XL smartphones last year.
According to reports, the announcement will see about 2,000 HTC employees joining Google.
"HTC will receive USD 1.1 billion in cash from Google as part of the transaction. Separately, Google will receive a non-exclusive licence for HTC intellectual property (IP)," the statement said.
This is Google's second major foray into phone hardware after its acquisition of Motorola in 2012 for USD 12.5 billion. Two years later, Motorola was sold off to China's Lenovo Group for USD 2.9 billion.
"Google's intent in HTC is more to bring device capabilities in-house which is different from Moto's acquisition," Gartner Research Director Anshul Gupta told
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.