HP To Acquire Palm For $1.2 Billion

Today HP and Palm announced that they had a definitive agreement under which HP will purchase Palm, a provider of smartphones powered by the Palm webOS mobile operating system, for approximately $1.2 billion – $5.70 per share of Palm common stock. The agreement will be signed not later than 31 July, 2010.

As the press-release states, HP intends to use the Palm for the active promotion on the smartphone market.The representative of the corporation said that WebOS is an ideal platform to expand HP’s presence in the mobile segment.

“Palm’s innovative operating system provides an ideal platform to expand HP’s mobility strategy and create a unique HP experience spanning multiple mobile connected devices,” said Todd Bradley, executive vice president, Personal Systems Group, HP. “And, Palm possesses significant IP assets and has a highly skilled team. The smartphone market is large, profitable and rapidly growing, and companies that can provide an integrated device and experience command a higher share. Advances in mobility are offering significant opportunities, and HP intends to be a leader in this market.”

John Rubinstein, Palm’s CEO, said that HP has all the resources for the development of all the ideas, incorporated in the WebOS. It is reported that Jon Rubinstein will continue to work in the company.

“We’re thrilled by HP’s vote of confidence in Palm’s technological leadership, which delivered Palm webOS and iconic products such as the Palm Pre. HP’s longstanding culture of innovation, scale and global operating resources make it the perfect partner to rapidly accelerate the growth of webOS,” said Jon Rubinstein, chairman and chief executive officer, Palm. ”We look forward to working with HP to continue to deliver industry-leading mobile experiences to our customers and business partners.”