Calif. – HP (NYSE: HPQ) announced on Wednesday
that it will acquire smartphone maker Palm (NASD: PALM), in a deal valued at $1.2 billion. Under
the terms, HP will pay about $5.70 per share for Palm, whose stock price closed
at $4.64 on Tuesday.
"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 of HP’s personal systems group.
"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."
suitors for Palm had been rumored to include Dell and Taiwan’s HTC.