HP acquires smartphone maker Palm for $1.2 billion

Published on Apr 29, 2010

Hewlett-Packard (HP), the world's largest computer manufacturer, has forayed into the mobile phones market, buying smartphone maker Palm for $1.2 billion

Published on Mar 17, 2011

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HP and Palm have entered into a definitive agreement under which HP will purchase Palm, a provider of smartphones powered by the Palm webOS mobile operating system. However, Palm CEO Jon Rubinstein is expected to remain with the company. With this deal, HP plans to participate more aggressively in the fast-growing smartphone market by utilizing Palm’s unique webOS platform. The acquisition will enhance HP's ability to take advantage of Palm's webOS platform features such as true multitasking and always up-to-date information sharing across applications."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."This transaction is expected to be sealed by the HP’s third fiscal quarter ending on July 31, 2010. Furthermore, Palm stockholders will receive $5.70 in cash for each share of Palm common stock that they hold at the closing of the merge as per the terms of the merger agreement. (via: press release) 

 

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