Taiwanese smartphone maker, HTC has announced that it has acquired a majority 51 percent stake in Beats Electronics, according to reports.

HTC has reportedly agreed to pay more than $500 million for acquiring the stake in the company, which produces headphones and loudspeakers. The Beats headphones are very popular among the young music lovers in various markets.

The acquisition will allow HTC to integrate the Beats sound system into its handsets. HTC is expected to allow Beats to continue running as a separate autonomous entity.

Beats Electronics, which was developed by Dr. Dre, is controlled by Dr. Dre and Jimmy Iovine, chairman of Interscope records. The Universal Music Group also has a small stake in the company.

"The HTC and Beats by Dr. Dre partnership is an opportunity for two world-class companies to redefine the smartphone industry and define the future. For Beats by Dr. Dre, this represents a critical step in our continued mission to clean up the destruction of audio caused by the digital revolution and reengineer how sound is delivered, so the consumer feels the music the way that the artist intended," the company said in a statement.