HP buys Palm for $1.2 Billion

HP said on Wednesday that it had entered into an agreement to purchase Palm for $1.2 Billion.

In a press release issued by HP, the company said the acquisition would allow HP to "participate more aggressively in the fast-growing, highly profitable smartphone and connected mobile device markets." HP plans to take advantage of WebOS by using the multitasking features and always up-to-date information sharing across applications.

“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, 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.”

Palm’s current chairman and CEO, Jon Rubinstein, is expected to remain with the company and the deal is expected to close during HP’s third fiscal quarter ending July 31, 2010.

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