Google confirms buying HTC's mobile division team for $1.1 billion

Google has confirmed its plans to acquire parts of Taiwan-based HTC’s mobile division team for $1.1billion. The two companies have reportedly signed a definitive agreement under which certain HTC employees – many of whom are already working with Google to develop Pixel smartphones – will join Google.

Under the agreement, HTC will receive $1.1 billion in cash from Google as part of the transaction, while Google will get a non-exclusive license for HTC intellectual property.  The transaction, which is subject to regulatory approvals and customary closing conditions, is expected to close by early 2018.

“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,” Rick Osterloh, Google’s Senior Vice President of Hardware, said in a statement.

However, HTC will continue with its own smartphone operations despite selling some of its mobile division over to the search engine giant. HTC CEO Cher Wang said that this agreement will “ensure continued innovation within our HTC smartphone and Vive virtual reality business.” Additionally, alongside the announcement, HTC has revealed working on the next flagship smartphone, following the successful launch of the HTC U 11 earlier this year.