HP acquires Palm for $1.2 billion

Todd Bradley, executive vice president, Personal Systems Group, HP

Technology firm HP has announced the acquisition of smartphone pioneer, Palm, at a price of $1.2 billion.

“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.

Bradley explained that Palm’s choice was justified by its “significant IP assets” and the rapidly growing smartphone market, in which HP “intends to be a leader”.

Jon Rubinstein, current chairman and CEO Palm, said HP would further accelerate the growth of webOS and bring mobile experiences to businesses and clients worldwide. He is expected to remain with the company after the transaction is finalised.

According to the 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 deal is expected to be completed during HP’s third fiscal quarter ending 31 July 2010.

Bradley also acknowledged HP’s current partnership with Microsoft on Windows Phone 7, which he said it does not plan to abandon.