Hewlett-Packard (HP) announced yesterday that it is going to purchase smartphone maker Palm for $1.2 billion (almost R9 billion) in a deal that has been approved by the board of directors of both companies. The deal is expected to finalise around the end of July. Jon Rubinstein, who is Palm’s current chairman and CEO, is expected to remain with the company but details about his new position remains unknown. 
 
“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 of 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.”

Last year to much fanfare Palm released the Palm Pre smartphone with their own webOS operating system, but it failed to claim real market-share as was initially expected.