HTC will receive the $1.1 billion in cash as part of the transaction for its staff, which have already been working with Google on its Pixel smartphone.
Google will have access to HTC’s smartphone IP, but the non-exclusivity of the deal means that HTC will continue to own its IP and license it freely.
Both companies said the agreement was a “testament to the decade long history of teamwork” between them, which included the first ever Android smartphone.
Google senior vice president of hardware, Rick Osterloh, said: “It’s still early days for Google’s hardware business.”
“We’re focused on building our core capabilities, while creating a portfolio of products that offers people a unique yet delightful experience only made possible by bringing together the best of Google software—like the Google Assistant—with thoughtfully designed hardware.”
He added: “HTC has been a longtime partner and has created some of the most beautiful, high-end devices on the market. We can't wait to welcome members of the HTC team to join us on this journey.”
Cher Wang, chair and CEO of HTC, said: “As a pioneer of the smartphone market, we are very proud of our history of innovation.”
She added: “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. 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.”
“We believe HTC is well positioned to maintain our rich legacy of innovation and realise the potential of a new generation of connected products and services,” she said.