Microsoft has acquired the wearable computing intellectual property (IP) assets of Osterhout Design Group (ODG). The deal is valued at $150 million, according to TechCrunch.

Founder and company head Ralph Osterhout said of the San Francisco-based firm: "In terms of what we're doing [at ODG], we don't make weapons. We make things that can help people do their jobs. The real focus are features that are applicable in the consumer space, too."

The software giant had previously considered buying the whole company. Later on, the two firms agreed on the purchase of just the intellectual property of augmented reality gadgets. ODG is a low-profile firm that mainly caters to military and state organizations, the report detailed.

Under the terms of the said deal, ODG will continue to operate as an entity separate from Microsoft. The transaction had been completed in November 2013. The patents in question have been transferred in January 2014, TechCrunch reported.