HP acquires Palm for 1.2 billion

Today HP and mobility.html’ title=’Palm Pre now available from Alexander Bell Mobility’>Palm announced that HP will be acquiring the troupe for 1.2 one thousand million dollars. This is certainly goodness for single of the leading PC maker, and now they can push into the consumer and endeavor markets all at once with their IPAQ devices.

Initially, Palm (NSDQ: PALM) and HP were competing with each other with the IPAQ, and Palm Pilot devices, and now they are about to shuffle sweet, sweet lovemaking.  This certainly helps Palm out, as it gives them the scale it needs to continue their WebOS batting order, and HP now has an IP portfolio that is almost as great as Apple’s. “Palm possesses significant IP assets and has a highly skilled team. The smartphone marketplace is large, profitable and rapidly ontogeny, and companies that can provide an integrated device and experience command a higher share. Advances in mobility are oblation significant opportunities, and HP intends to be a leader in this market.”

With Palm in their pocket, HP now is positioned to really take on the smartphone marketplace. The IPAQ devices that HP has been devising with Windows Mobile rich person been met with very mixed reception, as they rich person been stuck in a PDA sort of domain with little probability of getting of it. With WebOS in towage,  HP will most certainly go into the consumer marketplace, give a much-needed computer hardware improvement, and push WebOS like there’s no tomorrow.With HP’s marketing mightiness, no thirster will WebOS be met with cringes.

With other computer manufacturers, like Dell, pickings marketplace share away from HP, the accomplishment of Palm looks like a very smarting investment for the troupe. With some knowledge of the mobile manufacture, HP could turn WebOS into a very powerful player in the marketplace.

While this is goodness for both companies, what’s company it whitethorn hurt? Google (NSDQ: GOOG). It was rumored that HP and Google would team up, and HP had shown off it’s Airlife Android netbook a couple of months ago. Does this mean value that there will no thirster be an Android pill that’s been rumored ever since we’d heard of the Windows 7 HP pill? It shouldn’t hurt the big G too hard, as there volition soon be a overflow of Android tablets. Palm on the other helping hand needs any help in can get, and HP sure came to the rescue.

Expect good things to come from this new marriage, hopefully we North Korean won’t rich person to wait too long to see what HP’s plans are for WebOS. Hopefully, and this is just me wish, we whitethorn see an HP WebOS Slate in the future tense.

Palm is now up $1.23 (26.57%) after hours.

HP to Acquire Palm for $1.2 Billion

Combination will accelerate HP’s emergence within the more than $100 one thousand million connected mobile gimmick market

PALO ALTO and SUNNYVALE, Calif., Apr 28, 2010

HP and Palm, Inc. (National Association of Securities Dealers Automat: PALM) today announced that they rich person entered into a definitive correspondence under which HP will purchase Palm, a supplier of smartphones powered by the Palm webOS mobile operating system, at a monetary value of $5.70 per share of Palm park stock in cash or an enterprise value of approximately $1.2 one thousand million. The transaction has been approved by the HP and Palm boards of directors.

The combining of HP’s global scale and financial strength with Palm’s unparalleled webOS chopine will enhance HP’s ability to participate more aggressively in the fast-ontogeny, highly profitable smartphone and connected mobile device markets. Palm’s unique webOS volition allow HP to takings reward of features such as true multitasking and always up-to-date information share-out across applications.

“Palm’s innovative operating organization provides an apotheosis platform to expand HP’s mobility strategy and create a unique HP experience spanning multiple mobile connected devices,” said Todd Omar Bradley, executive frailty prexy, Personal Systems Group, HP. “And, Palm possesses significant IP assets and has a highly skilled squad. The smartphone marketplace is large, profitable and rapidly growing, and companies that can provide an integrated device and experience command a higher share. Advances in mobility ar offering significant opportunities, and HP intends to be a drawing card in this market.”

“We’re thrilled by HP’s vote of confidence in Palm’s technological leading, which delivered Palm webOS and iconic products such as the Palm Pre. HP’s longstanding culture of instauration, scale and global operating resources make it the perfective partner to rapidly accelerate the emergence of webOS,” said Jon Anton Rubenstein, chairperson and chief executive military officer, Palm. ”We looking forward to workings with HP to continue to deliver manufacture-leading mobile experiences to our customers and business partners.”

Under the price of the merger agreement, Palm stockholders volition receive $5.70 in cash for each contribution of Palm common livestock that they hold at the closing of the amalgamation. The merger thoughtfulness takes into account the updated guidance and other financial selective information being released by Palm this afternoon. The accomplishment is content to customary closing conditions, including the receipt of domestic help and foreign regulatory approvals and the approval of Palm’s stockholders. The transaction is expected to finale during HP’s third base fiscal quarter termination July 31, 2010.

Palm’s stream chairman and chief executive officer, Jon Anton Rubenstein, is expected to remain with the troupe.