Update: Handspring's website now reflects the change.
Palm and Handspring today announced that stockholders of both companies have
approved a transaction that transforms the landscape for handheld computing and
communications. The transactions are expected to close later today, and two new
leadership companies are expected to emerge and begin trading tomorrow on the
Nasdaq stock market.
At Palm's Annual Stockholders Meeting today, stockholders approved the
spin-off of PalmSource, Inc., provider of the world's leading operating system
platform for mobile computing and communications, from Palm, Inc. P
alm will distribute all the shares of PalmSource it owns (approximately 86
percent of the total) to Palm stockholders of record as of the close of business
today. Those Palm stockholders will receive approximately 0.31 shares of
PalmSource common stock for each share of Palm common stock they own. PalmSource
common stock will trade on the Nasdaq stock market under the ticker symbol PSRC,
Palm stockholders also approved the acquisition of Handspring, Inc., maker of
innovative smartphones based upon the Palm OS platform. Separately, Handspring
stockholders approved the acquisition of their company by Palm, Inc. The
acquisition will be completed as a merger with Palm issuing approximately 13.9
million shares to Handspring stockholders. Handspring's stockholders will
receive 0.09 Palm shares for each share of Handspring common stock owned. The
resulting company has been renamed palmOne, Inc. Its common stock will trade on
the Nasdaq stock market exchange under the ticker symbol PLMO, starting
"PalmSource emerges as the premier operating-system platform company in the
handheld industry, better able as an independent company to attract new and
varied licensees and to further build the Palm Economy," said Eric Benhamou,
chairman of PalmSource and palmOne. "palmOne emerges as a stronger leader in
mobile computing and communications, better able to address customer needs with
the broadest portfolio, widest distribution channels and the most-experienced
leadership team in the industry.
"This new industry configuration enhances the ability of both companies to
deliver value to customers, partners and stockholders," Benhamou said.
As an independent company, PalmSource will be better able to deliver on its
corporate objectives of growing the Palm Economy, maintaining its platform
leadership, and delivering consistent profitability.
"We are at the beginning of a new phase in the growth of smart mobile devices,"
said David Nagel, PalmSource president and chief executive officer. "As an
independent company, PalmSource can accelerate the acceptance of Palm OS as the
leading software platform for a wide range of innovative new products."
PalmSource has headquarters in Sunnyvale, Calif., and employs 311 people. In
addition to Nagel, the new company's executive team includes the following:
- Larry Slotnick, chief products officer
- David Limp, senior vice president, corporate and business development
- Lamar Potts, vice president, worldwide licensing
- Gabi Schindler, senior vice president, marketing
- Al Wood, senior vice president and chief financial officer
- Doreen Yochum, chief administrative officer.
The new, stronger competitor created in palmOne is better able to meet the
company's corporate objectives of growing the market, maintaining industry
leadership, and achieving consistent profitability.
"This merger of leaders gives palmOne significant advantages as we build on
delivering what matters most to customers, including the high-potential category
of smartphones," said Todd Bradley, palmOne president and chief executive
officer. "We'll work to continue pleasing customers from the newest consumer who
is just now moving beyond paper organizers to the multimedia enthusiast, and
from the mobile professional to the chief information officer. We're also
confident that our combined scale will allow us to capitalize on the operational
discipline we've put in place over the last two years."
palmOne has headquarters in Milpitas, Calif., and employs 815 people. In
addition to Bradley, the new company's executive team includes the following:
- Jeff Hawkins, chief technology officer
- Judy Bruner, senior vice president and chief financial officer
- Ed Colligan, senior vice president and general manager of the Wireless
Business Unit, which includes the Treo(TM) family of smartphones
- Ken Wirt, senior vice president and general manager of the Handheld
Business Unit, which includes the Zire(TM) and Tungsten(TM) product families
- Angel Mendez, senior vice president of Global Operations
- Mary Doyle, senior vice president and general counsel
- Patricia Tomlinson, senior vice president and chief human resources