Google and HTC have been in friendly terms since a long time now. The first commercial Android device that came into this world was T-Mobile G1 or HTC Dream manufactured by HTC in 2008. Then in 2010, HTC again helped Google launch Nexus products. Last year, Google Pixel devices were manufactured by HTC too.

Now, coming to this year, HTC and Google are taking this relationship a step ahead. Yesterday, Google confirmed that it is acquiring the HTC’s mobile division team, to be precise, the team behind Pixel handsets at HTC for $1.1 billion.

Rick Osterloh, the Senior Vice President (Hardware) at Google, says in a blog post, “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.”

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Unfortunately, HTC hasn’t been able to compete with other OEMs in the past few years. Their smartphones fail to strike a chord with users. However, the acquisition doesn’t change anything at HTC, they will continue to manufacture their own smartphones under HTC brand.

Google is set to release the 2nd generation of “Made by Google” products on October 4. It includes HTC-made Pixel 2, LG made Pixel 2 XL, Google Home Mini, new Google Daydream VR and Pixelbook.