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Hewlett-Packard Buys Palm For $1.2B

Palo Alto, Calif. – Hewlett-Packard and Palm have
entered into a definitive agreement under which HP will purchase Palm for $1.2

The deal, approved by both boards, combines HP’s global scale and
financial strength with Palm’s webOS platform to enhance HP’s ability to
participate more aggressively in the fast-growing, highly profitable smartphone
and connected mobile device markets, the two companies said in a statement.

Palm’s unique webOS will allow HP to take advantage of such
features as true multitasking and always-up-to-date information sharing across

“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 VP, 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 CEO, Palm. “We
look forward to working with HP to continue to deliver industry-leading mobile
experiences to our customers and business partners.”

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.

Rubinstein is expected to remain with the company.