|
News
Issue #2002 - 01
(January 2002)
(Updated Jan.
9, 2002)
ACQUISITIONS,
MERGERS & AGREEMENTS
Handspring and Palm Each Get a
Financial Boost
Confidence in the handheld
market is heating up with the number one and number two handheld
makers, Palm and Handspring, announcing infusions of financial
capital, which will help them move forward with their respective
strategic objectives.
Palm, Inc.
Palm announced that it has issued a $50-million convertible note
to an unidentified investor. The Santa Clara, California, company
said it will use the offering to strengthen its balance sheet and to
support wireless and enterprise initiatives.
The note is a five-year term and is convertible into Palm common
stock at $4.63 per share, the company said.
Palm’s chairman and CEO Eric Benhamou said, "This capital
commitment demonstrates a high level of external confidence in
Palm." He added that Palm is moving ahead with its strategic
objectives — "returning to profitability, executing on our
enterprise strategy and delivering an ARM-based set of solutions to
the marketplace."
Handspring, Inc.
Handspring, of Mountain View, California, said Qualcomm Inc. has
agreed to invest $10-million in the handheld maker by purchasing
1,838,945 shares of its common stock. The handheld maker also
announced a public offering of 7 million shares at $5.50 per share.
Handspring said it intends to use the
infusion of capital to fund acquisitions and capital expenditures.
For more information: http://www.palm.com
http://www.handspring.com
Mobileinfo Comments & Advisory: Device
vendors are in trouble. Too many devices, too many variations of these
devices and obsolescence factor of these devices is high. The customers
are frustrated when they need to discard the old device and buy another in
less than 12 months. For vendors, margins are going down. PalmOS is
finding serious competition from Pocket PC for enterprise applications.
Palm has seen its hey days. Handspring is nimble and more innovative. In
this environment, both need staying power. Hence the need for cash.
However, Palm needs more than cash.
Note: This news release may contain
forward-looking statements. Readers should take appropriate caution in
developing plans utilizing these products, services and technology
architectures. All trademarks used in this summary are
the property of their respective owners.
|
