Palm (NASDAQ: PALM) has entered into a definitive agreement to be acquired by Hewlett-Packard (NYSE: HPQ) for $1.2 billion. HP will make cash payments of $5.70 per share of Palm common stock. Palm provides mobile computing solutions and devices, and its acquisition will provide HP with leverage to compete in the growing smartphone and connected mobile device markets. Elevation Partners gained an interest in Palm through a $325 million recapitalization round in 2007 and a $100 million PIPE deal in 2008. The deal is expected to close by July 31st.
There have been 45 completed corporate acquisitions with valuations over $1 billion since the beginning of 2007, according to the PitchBook Platform. The most active industries are Wireless Service Providers and Application Software, each with three deals. The largest transaction was the acquisition of Alltel by Verizon Wireless and Vodafone Group Public in 2009, which was valued at $28.1 billion and represented an exit for TPG Capital and GS Capital Partners. The next largest is the acquisition of Plains All American Pipeline by Occidental Petroleum in 2008, which was valued at $12 billion and represented an exit for several PE investors including GPS Partners.