HP to buy Palm for $US1.2 billion

Stephen Withers
Thursday, 29 April 2010 12:17

IT Industry - Deals

HP, already the world's largest technology company, is set to expand further with the acquisition of Palm.

As previously reported, Palm has been seeking a buyer.

Once a leader in the handheld device stakes - the company's name was once almost synonymous with PDA - Palm didn't sustain the momentum as the market  evolved to smartphones.

Palm's recent lineup includes models based on Windows Mobile in addition to those running its own webOS. Separation of the hardware and OS businesses was tried in the early 2000s, but the two operations returned to common ownership in 2006.

Some models, such as the Pre, have been well received, but Palm never recaptured its early momentum. US figures for the fourth quarter of 2009 show Palm a distant - and slipping - fourth behind RIM (BlackBerry), Apple (iPhone) and Microsoft (Windows Mobile, now Windows Phone), with Google (Android) catching up fast.

Now HP stepped forward with an offer of $US1.2 billion ($US5.70 per share) for Palm, and the deal has been approved by the boards of both companies.

HP is planning a 'unique mobile experience' - see page 2.