HP Buys Palm for $1.2bn

HP is buying Palm for approximately $1.2 billion (£785 million) or $5.70 per share of Palm common stock. 

HP says the combination of its global scale and financial strength, and Palm’s webOS platform, will enhance its ability to participate more aggressively in the Smartphone and connected mobile device markets. It adds that 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,” says 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.”

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