Google is closing in on acquiring Amtex, the maker of hotel supply devices.
The deal, which was announced Tuesday morning, will help the company to expand its market reach beyond its core hotel business, which accounts for nearly half of its total revenue.
In addition to Amtex products, Google has also acquired devices from other vendors, including an app maker called AppFlyer and an audio service called iBud.
The Amtex acquisition marks a significant boost for Google, which is currently battling a growing list of competitors in the hotel supply market, including Amazon and Microsoft.
Google, in particular, is looking to leverage its growing expertise in hardware and software, including its own virtual reality headset, as it seeks to grow its mobile phone presence and become a global leader in the space.
The company’s $1 billion purchase of AmTex in February also raised eyebrows among hotel chains.
The move was seen as a potential attempt to expand the company’s power in the market and provide some additional cash to support its expansion efforts.
The acquisition, which includes the purchase of a minority stake in the company, comes at a time when many major hotel chains have been struggling to make ends meet amid a wave of automation, including in the supply chain.
For example, last year, the company said it would spend $7.5 billion to improve the quality of its supply chain and cut labor costs in order to stay competitive.
Google is also looking to build a network of partners and suppliers to further bolster its supply-chain efforts.
That includes partnerships with other technology companies, such as Microsoft and Qualcomm, which could help the tech giant expand its capabilities in the field.
The Google acquisition comes after the company signed a partnership with Philips to build its hotel supplies line, which will be used in its forthcoming hotel-themed smartphone.
The device will be available to consumers in the US, and the deal will enable the two companies to collaborate on building new hotel products.
Google will also work closely with Amtex to expand their supply chain, including building new manufacturing facilities and partnering with suppliers to improve their supply-chains, according to the deal.
Google also said it is working to improve its supply chains through the use of technology and hardware.
The news comes as Google is continuing to ramp up its efforts to make hotel products more comfortable and attractive to consumers, including a push to use smart-home appliances and smart-watches to help reduce the number of times a hotel guest has to wear an electronic device.
The search giant recently unveiled a new version of its popular Hotel Finder app, which now includes a feature called Room Mode that lets guests see how comfortable a room is.