HP to buy Palm for $1.2 billion

Hewlett Packard has signed an acquisition agreement that will see it acquire smart phone vendor Palm.

Under the terms of the deal, HP will make the purchase at a price of $5.70 per share with a total value of $1.2 billion. The respective boards of both companies have approved the transaction.

The move is expected to give HP a huge amount of additional clout in the mobile and smart phone markets, due to Palm’s experience in handset development and its unique WebOS, which will bring multitasking and information’s sharing between 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 the executive vice president of HP’s personal systems group, Todd Bradley.

“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.”