Palm to Aquire Handspring
By David Dritsas
Milpitas, CA, June 4th, 2003 — Palm Computing announced today that it has reached an agreement to acquire Handspring, the company made famous for making Palm OS-enabled smart-phones and other Palm OS PDAs. The company also announced the creation of two spin-offs: Palm Source, responsible for developing, promoting and licensing the Palm OS, and the Palm Solutions Group, responsible for hardware.
Though the companies have very similar products, Palm is seeking to strengthen its competitive edge by bolstering its distribution channels and taking on Handspring's successful line of Treo Communicators, the Palm OS-enabled smart phones, that became Handspring's bailiwick as it saw the trend for PDAs heading into the mobile communications market. The company is also expecting to improve operations by saving $25 million in annual expenses, reducing real estate and cutting 125 jobs.