HTC had its counter suspended today pending a major announcement, there were rumours that Google was in the plans to buy the beleaguered smartphone makers device business however both company’s released a statement that instead Google will be purchasing the team working on Pixel and some of HTC’s IP on mobile phones.

In the agreement, Google will pay US$1.1 billion in cash for the employees whom are already mostly working on to develop the Pixel smartphones. HTC has been building Android phones from day one and has been Googles’ strong ally to grow the operating software, and has been successful in building the Pixel smartphone for Google but keeps failing for its own devices.

HTC however will continue to work on its portfolio and is certain to roll-out more smartphones with a flagship in the line. It will also continue to build the virtual reality ecosystem to grow its VIVE business, and use the cash to start looking at other next-generation technologies, Internet of Things, augmented reality and artificial intelligence.

“As a pioneer of the smartphone market, we are very proud of our history of innovation. 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,” said Cher Wang, Chairwoman HTC.