The boards of directors at HP and Palm have come to an agreement on a buyout of Palm (Nasdaq: PALM) by HP (Nasdaq: HPQ). The negotiated price for the buyout is estimated at a whopping $1.2 billion at $5.70 per share of Palm’s common stock in cash.

This comes when HP is looking to enter the smartphone and tablet reader market in full force, with their high market share in the personal and portable computer market, this will extend their line of mobile products. HP is the type of company that Palm needs to back them up, and get their OS distributed in more markets around the world and on more devices. HP also has a well known marketing team, which will indeed benefit Palm greatly.

Source: HP