PALO ALTO, Calif. - Computer maker Hewlett-Packard Co. (HPQ) has agreed to acquire struggling smart phone maker Palm Inc. (PALM) for nearly $1 billion in cash.
The companies announced Wednesday they had agreed to the deal, which will see HP pay $5.70 for every Palm common share.
When debt is included, the deal values Palm at $1.2 billion.
The transaction is expected to close by the end of July.
HP said Palm's webOS operating system will help it participate more aggressively in the fast-growing market for smart phones and connected mobile devices.
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Hewlett-Packard to Acquire Palm in $1.2 Billion Deal