HP and smartphone provider, Palm Inc. today announced an agreement in which HP will be buying Palm, Inc. for $1.2 billion. HP agreed to have Palm stockholders receive $5.70 in cash for each share of Palm common stock that they hold at the closing of the merger. The closing is expected to take place during HP’s third fiscal quarter ending July 31, 2010.
“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,” Todd Bradley, executive vice president, Personal Systems Group, HP says, “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.”