By David Utter
Expert Author
Article Date: 2005-09-09
ACCESS, a Japanese provider of mobile and Internet technologies, will pay $324.3 million for PalmSource in an all-cash deal.
PalmOS provider PalmSource ends its up and down existence as an American company by agreeing to a buyout from Tokyo's ACCESS Company. The companies commented on the purchase in a press release:
"The acquisition of PalmSource is expected to further extend ACCESS' leadership as a provider of mobile content delivery and Internet access software for mobile devices worldwide. The combination of Palm OS with ACCESS' software products is expected to give ACCESS one of the broadest lines of mobile software in the industry, as well as extend its market opportunity."
Palm, now a maker of PDA hardware, has seen demand for PDAs decrease as smartphones and email devices like the BlackBerry grew in appeal. PalmSource split from Palm and has been focusing on the Palm OS, which has found global appeal and adoption by companies like Samsung and Sony for its devices.
ACCESS will pay a hefty premium for PalmSource, roughly $18.50 per share. PalmSource closed at $10.09 yesterday, which means those shareholders who have been hoping for a buyout will be doing backflips over the 83 percent premium. Shareholders and government regulators must approve the deal, which already has the blessing of boards from both companies.
