HP Acquires Palm for Expansion in Smart Phones

Written by: on 29th April 2010 |
HP Acquires Palm for Expansion in Smart Phones  | read this item

Mergers and acquisitions are the way for companies to grow. They acquire companies to expand their portfolio of products. This is especially true in the IT business.

Just recently, the world’s biggest IT company in terms of revenue announced its acquisition plan for Palm. According to HP’s disclosure statement, HP will be acquiring Palm at a price of $5.70 per share of in common stock or in cash. This is equivalent to an enterprise value of approximately $1.2 billion. The said acquisition was already approved by the board of directors of both companies.

This new development will increase HP’s foothold in mobile devices led by giant companies such as Apple and Nokia. I think with the rise of the digital age, mobile technology will surely be one of the most profitable part of IT business.

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