Private Equity Firm buys 25% of Palm for $325M
By Will Park on Monday, June 4th, 2007 at 11:21 AM PST In Announcements, Palm, Partnerships
Just a week after announcing their Palm Foleo, the struggling handset manufacturer has inked a deal to sell 25% of the company to private equity firm, Elevation Partners, for about $325 million. As part of a reorganization plan to revitalize the company, Palm (NSDQ: PALM) has brought on Jon Rubinstein (former Apple (NSDQ: AAPL) iPod exec) as an executive chairman.
Ed Colligan, President and CEO of Palm, released a statement saying, “As a result of this transaction, we will strengthen the Palm leadership team and create a more effective capital structure, which puts us in a great position to attract new talent, significantly strengthen our execution capabilities and deliver long-term shareholder value.”
The deal includes a $940 million dividend payout to Palm’s shareholders – about $9 per share. Elevation Partners is founded and headed by U2’s Bono.
via: nytimes
