Palm Files with SEC for Spin-off, Acquisition of Handspring
Jul 7, 2003
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Palm, Inc. -- which consists of two operating units, Palm Solutions Group and PalmSource, Inc. -- announced that it has filed a registration statement on Form S-4 with the Securities and Exchange Commission (SEC) in connection with the proposed transaction involving the distribution of PalmSource common stock held by Palm to Palm's stockholders and Palm's subsequent acquisition of Handspring, which was announced on June 4, 2003.
Palm and PalmSource reported that Palm's stockholders will realize benefits from the separation of the two companies, including:
greater clarity of mission and focus for both businesses;
increased speed and responsiveness to technology change and customer needs for both companies;
increased number of potential licensees for the Palm operating system; and
more direct access to capital markets for both companies, given that they can be more easily understood by investors and securities analysts.
According to Palm, the Handspring merger is designed to create a stronger market leader in mobile computing and communications. The combination will put the Palm Solutions Group in a better position to pursue its objectives of growing the market, maintaining industry leadership and achieving profitability, the company said.
Palm believes that the potential benefits of the merger include the ability to:
take better advantage of future growth opportunities through increased scale and improved operational efficiency;
deliver a broad portfolio of mobile products from traditional handhelds to wireless hand-held devices and smartphones;
add Palm's strong brand and distribution channels to Handspring's highly regarded Treo product line and wireless telecommunications carrier relationships; and
enhance Palm's management team and board of directors through the addition of several of Handspring's key officers and directors.
The company said the filing of the registration statement is an important milestone toward the completion of this transaction, which Palm expects to close in the fall, subject to certain regulatory and stockholder approvals and other conditions.
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