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ACCESS, a global provider of mobile content delivery and Internet access software, and PalmSource, the designer of Palm OS, have announced they have signed a definitive agreement for ACCESS to acquire PalmSource. The acquisition of PalmSource is expected to extend ACCESS’ positions as a provider of mobile content delivery and Internet access software for mobile devices worldwide.
“By combining ACCESS' robust NetFront browser platform and its proven business relationships with PalmSource’s advanced operating system, application portfolio, user interface and developer communities, we will be able to produce a comprehensive yet flexible solution for the mobile market,” said Toru Arakawa, CEO of ACCESS
PalmSource, a spin-off of Palm Inc., will be acquire in an all-cash transaction valued at $18.50 per share of PalmSource common stock , or approximately $324.3 million. ACCESS’ $18.50 per share offer represents an 83% premium for PalmSource stockholders based on the market closing price of $10.09 on
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. With this acquisition, ACCESS gains operating system platform expertise and Linux development resources for mobile devices in the
Palm OS is currently used in 18.8% of all personal digital assistants sold and the trend did not look positive for the operating system in the most recent quarter, as its market share declined substantially from the same period last year. Palm Inc.’s executives already said that the company would continue to use Palm OS in future devices.
“We are very excited about joining forces with ACCESS to help create a leading provider of software for the mobile market,” said Patrick McVeigh, interim CEO of PalmSource. “We believe the customer and technology synergies of the combined companies will open up new market opportunities for both companies worldwide”.
The merger agreement has been approved by the board of directors of each of ACCESS and PalmSource. The acquisition is expected to be completed by the end of 2005 calendar year, pending regulatory approval and the approval of PalmSource’s shareholders.
