HP announced today that they have acquired Palm for $1.2 Billion. The sale of Palm comes as no surprise as they have been actively seeking a buyer for the past few months. HP will be buying Palm at $5.70, a 23% premium over today's closing price of $4.63. The sale is expected to close by the end of July.
Analyst believe the key to today's deal was Palm's webOS mobile platform. HP has dabbled with Windows Mobile phones in the past and is currently working on Android based Smartphones. The move shows that HP is looking to put more emphasis in today's growing wireless market. HP is also getting over 1,500 patents that Palm currently controls.