HP completes $1.2 billion Palm acquisition

Hewlett-Packard says it has completed its acquisition of Palm at $5.70 a share, or about $1.2 billion, paving the way for HP's move into the smartphone market.

The deal, first announced in April, gives HP Palm's webOS mobile operating system, which runs Palm's Pre and Pixi smartphones. HP says that will help fuel its participation in a $100 billion market for smartphones and other connected mobile devices.

"With webOS, HP will deliver its customers a unique and compelling experience across smartphones and other mobility products," said Todd Bradley, executive vice president in HP's Personal Systems Group.

The Palm unit will report to Bradley. It will be led by Jon Rubinstein, former Palm chairman and chief executive officer.

HP says Palm will be responsible for webOS software development and webOS based hardware products, including smartphones,"future slate PCs" and netbooks.

"With HP's full backing and global strengths, I'm confident that webOS will be able to reach its full potential," said Rubinstein. "This agreement will accelerate the development of this incredible platform with new resources, scale and support from a world-respected brand."