Hewlett-Packard to Purchase Palm

Hewlett-Packard said on Wednesday it would acquire Palm, the struggling cellphone maker, for $1.2 billion in cash.

Palm had begun exploring a sale as it has continued to struggle in the marketplace. While the company has won acclaim for webOS, its new smartphone operating system, its new products like the Pre and the Pixi have failed to draw customers away from rivals like Apple and Research in Motion.

“We’re thrilled by HP’s vote of confidence in Palm’s technological leadership, which delivered Palm webOS and iconic products such as the Palm Pre,” Jon Rubenstein, Palm’s chairman and chief executive, said in a statement. “HP’s longstanding culture of innovation, scale and global operating resources make it the perfect partner to rapidly accelerate the growth of webOS.”

Go to Hewlett-Packard Press Release via Business Wire »

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