HP to acquire Palm for nearly $1B in cash

April 28, 2010 1:33:21 PM PDT
Computer maker Hewlett-Packard Co. has agreed to acquire struggling smart phone maker Palm Inc. for nearly $1 billion in cash The companies announced Wednesday they had agreed to the deal, which will see HP pay $5.70 for every Palm common share. Palm had closed trading Wednesday at $4.63 but traded as high as $18.09 in the past 52 weeks.

When debt is included, the deal values Palm at $1.2 billion.

The transaction is expected to close by the end of July.

HP said Palm's webOS operating system will help it participate more aggressively in the fast-growing market for smart phones and connected mobile devices. It also said Palm's current chairman and CEO, former Apple Inc. executive Jon Rubinstein, is expected to remain with the company.