Google will hire a team of hardware engineers from HTC, the Taiwan-based mobile and consumer electronics firm.
The HTC team has been working closely with Google on its Pixel smartphone line.
The deal, reportedly worth US$1.1 billion, also includes a non-exclusive license for HTC intellectual property.
Google is planning to unveil its latest line of hardware products on October 4th.
- In 2012, Google acquired Motorola ia deal valued at US$12.5 billion. The acquisition included an extensive intellectual property portfolio. Google later sold the Motorola handset business to Lenovo for $2.9 billion.