PalmSource Spin-off and Handspring Acquisition Approved
Palm, Inc. and Handspring, Inc. today announced that stockholders of both
companies have approved a transaction that transforms the landscape for handheld
computing and communications.
Palm stockholders have approved the acquisition of Handspring, Inc. Separately,
Handspring stockholders approved the acquisition of their company by Palm, Inc.
In addition, stockholders have approved the spin-off of PalmSource, Inc.,
provider of the world’s leading operating system platform for mobile computing
and communications, from Palm, Inc.
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
MILPITAS, Calif., Oct. 28, 2003 — Palm, Inc. (Nasdaq:
PALM) and Handspring, Inc. 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. Palm 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, starting tomorrow.
Palm stockholders also approved the acquisition
of Handspring, Inc., maker of innovative smartphones based upon the Palm OS(R)
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 tomorrow.
“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
* Gabi Schindler, senior vice president,
* Al Wood, senior vice president and chief
financial officer; and
* Doreen Yochum, chief administrative
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
* Mary Doyle, senior vice president and
general counsel; and
* Patricia Tomlinson, senior vice president
and chief human resources officer.
The palmOne board of directors consists of seven
members from the former Palm, Inc. board plus three members of the former
Handspring board of directors: John Doerr, Bruce Dunlevie and Donna Dubinsky.
Benhamou continues as chairman of PalmSource and palmOne.
Palm, Inc. and Handspring, Inc. Historical
1992 – Jeff Hawkins founds Palm, Inc.
1995 – U.S. Robotics purchases Palm, Inc.
1996 – Palm introduces the PalmPilot 1000 and 5000
1997 – 3Com purchases U.S. Robotics.
1998 – Hawkins, Dubinsky and Colligan leave Palm to
2000 – Palm executes an Initial Public Offering,
separating from 3Com.
2001 – Palm begins building separate businesses
Todd Bradley named Palm Solutions Group executive
vice president and chief operating officer (June 1)
Palm announces plans to create the Palm OS
subsidiary (July 27)
Palm OS subsidiary acquires assets and talent from
Be, Inc. (Aug. 16)
David Nagel is named Palm OS subsidiary president
and chief executive officer (Aug. 27).
2002 – Palm further builds on two businesses
Palm OS subsidiary creation completed (Jan. 1)
Bradley promoted to president and chief operating
officer of Palm Solutions Group (May 2)
Palm OS subsidiary named PalmSource
PalmSource names board of directors (June 24)
Bradley named Palm Solutions Group chief executive
officer (June 25)
Palm Solutions Group and PalmSource move to separate
Sony invests $ 20 million in PalmSource, marking
first outside investment (Oct. 8)
PalmSource adds four new licensees in year
IRS rules the spin-off as tax-free for U.S.
citizens’ federal income-tax purposes (December)
2003 – Palm strengths position in the handheld
computing and communications space
Announces plans to acquire Handspring and spin off
PalmSource, Inc. (June 3)
Stockholders approve transaction to spin off
PalmSource, Inc. and acquire Handspring to form palmOne, Inc. (Oct. 28)
About PalmSource, Inc.
Information about PalmSource is available at
About Palm and palmOne, Inc.
Information about Palm, Inc. is available at
Information about palmOne, Inc. is available at