Connect with us

Hi, what are you looking for?

SecurityWeekSecurityWeek

Mobile & Wireless

HP to Acquire Palm Inc. for Over $1 Billion In Cash

Hewlett-Packard Co. has agreed to acquire struggling smart phone maker Palm Inc. for over $1 billion in cash. The companies announced Wednesday they had agreed to the deal, which will see HP pay $5.70 for every Palm common share. With debt included, the deal values Palm at $1.2 billion. The transaction has been approved by the HP and Palm boards of directors.

Hewlett-Packard Co. has agreed to acquire struggling smart phone maker Palm Inc. for over $1 billion in cash. The companies announced Wednesday they had agreed to the deal, which will see HP pay $5.70 for every Palm common share. With debt included, the deal values Palm at $1.2 billion. The transaction has been approved by the HP and Palm boards of directors.

The combination of HP’s global scale and financial strength with Palm’s unparalleled webOS platform will enhance HP’s ability to participate more aggressively in the fast-growing, highly profitable smartphone and connected mobile device markets. Palm’s unique webOS will allow HP to take advantage of 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.”

“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.”

Under the terms of the merger agreement, Palm stockholders will receive $5.70 in cash for each share of Palm common stock that they hold at the closing of the merger. The merger consideration takes into account the updated guidance and other financial information being released by Palm this afternoon. The acquisition is subject to customary closing conditions, including the receipt of domestic and foreign regulatory approvals and the approval of Palm’s stockholders. The transaction is expected to close during HP’s third fiscal quarter ending July 31, 2010.

Palm’s current chairman and CEO, Jon Rubinstein, is expected to remain with the company.

Shares of PALM closed at $4.63 on Wednesday before the announcement was made.

Written By

Click to comment

Trending

Daily Briefing Newsletter

Subscribe to the SecurityWeek Email Briefing to stay informed on the latest threats, trends, and technology, along with insightful columns from industry experts.

Don’t miss this Live Attack demonstration to learn how hackers operate and gain the knowledge to strengthen your defenses.

Register

Join us as we share best practices for uncovering risks and determining next steps when vetting external resources, implementing solutions, and procuring post-installation support.

Register

People on the Move

SSH Communications Security has appointed Pauli Haikonen as the company’s Chief Information Security Officer (CISO).

Cloud and container security firm Sysdig has tapped William Welch as CEO on its path to an IPO.

Dave Scher has been promoted to Deputy Chief Information Officer at MITRE.

More People On The Move

Expert Insights

Daily Briefing Newsletter

Subscribe to the SecurityWeek Email Briefing to stay informed on the latest cybersecurity news, threats, and expert insights. Unsubscribe at any time.