Facebook Vice President of AR/VR Andrew Bosworth announced the deal in a Facebook post.
CTRL-labs will join Facebook Reality Labs team, Bosworth said, without giving any financial details.
Facebook said it intends to use the neural interface technology of CTRL-labs in developing a wristband that connects to other devices intuitively.
"The vision for this work is a wristband that lets people control their devices as a natural extension of movement,” Bosworth said.
"We hope to build this kind of technology, at scale, and get it into consumer products faster," he added.
Media reports said CTRL-labs is working with brain science and machine learning to create interfaces for people to control and manipulate computers by thinking. Its development-stage wrist-worn device uses sensors to track gestures and would act as an input device.
The deal is valued at about $1 billion, CNBC reported, citing a source familiar with the matter.
Facebook was not immediately available for comment on the deal value.
