Google and HTC have confirmed that the former is buying a substantial part of HTC’s smartphone business. The Search giant is spending $1.1 billion to acquire HTC’s engineering assets, giving it non-exclusive access to the company’s patents as well. The deal allows HTC to continue pursuing its own smartphone plans still, and the ailing Taiwanese giant will likely benefit with the infusion of cash coming from Google.

It would seem like Google wants to use the resources obtained from HTC to continue working on its bet with the new Pixel smartphones.

The two companies put rumours to rest on Thursday, making the announcement official. With that, speculations about Google buying HTC’s Vive division also come to a halt. It would seem like Google wants to use the resources obtained from HTC to continue working on its bet with the new Pixel smartphones.

Earlier reports have indicated that HTC was one of the companies making this year’s Pixel 2 smartphone. Google, on the other hand, had confirmed that the Pixel 2 would continue focusing on the camera, while bringing some other changes as well. Some say Google should be exhibiting big improvements in augmented reality capabilities with the upcoming device.