HTC has acquired French mobile application developer Abaxia for $13.2 million.
The deal is seen as a strategic move on the part of HTC to increase its software design capacity.
HTC believes that by having an in-house software developing unit will help the company to create new and better software applications.
HTC and Abaxia have previously worked together on software development for HTC's smartphones. Abaxia has also worked alongside rival phone makers Nokia, Motorola and LG, to create software for their devices.
Peter Chou, chief executive of HTC, stated: “The addition of Paris-based Abaxia will deepen and broaden our software-development capabilities so that we can innovate at an even faster pace."
It has been suggested that the acquisition hints at HTC's shift towards creating its own OS, and a desire to fulfil demand for more advanced software in smart phones.