Japanese company Access Co., Ltd., known for its web browsing software for embedded and mobile devices, signed a a definitive agreement for to acquire PalmSource in an all-cash transaction valued at USD $18.50 per share of PalmSource common stock, or approximately US$324.3 million (approximately ¥35.9 billion).
PalmSource is a spin off Palm, and sold the Palm brand rights to its sister company PalmOne, which has its name changed back to Palm a few months ago.
The company expects to extend its position as a provider of mobile content delivery and Internet access software for mobile devices worldwide. With this acquisition, Access gains operating system platform expertise and Linux development resources for mobile devices in the U.S., France and China.
A few months before this announcement PalmSource acquired China MobileSoft, a Chinese developer that specialises in Linux software for mobile devices.
"PalmSource is a global leader in mobile device software and the developer of the well known Palm OS operating system," said Toru Arakawa, CEO of Access. "The PalmSource family of software products which run on over 39 million devices, and the PalmSource community of approximately 400,000 mobile application developers, provide an established worldwide mobile software platform. In addition, PalmSource's earlier acquisition of China MobileSoft, a developer of Linux technology, provides the foundation to promote Linux-based platforms for mobile devices. 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."
The merger agreement has been approved by the board of directors of each of Access Co., Ltd. and PalmSource, Inc. The acquisition is expected to be completed by the end of 2005 calendar year, pending regulatory approval and the approval of PalmSource's shareholders.