Today, HP announced its intent and agreement to acquire Palm. The boards for both companies have already approved the transaction. The result is HP's strength in the market place combined with Palm's advanced webOS mobile platform and hardware devices. This will help HP to grow its presence in the hot area of mobile computing, and it gives Palm the scale and resources it needs to grow its platform far beyond what they've been able to do on their own in the present market.

Under the terms of the merger agreement, Palm stockholders will receive $5.70 in cash for each share of Palm common stock that they hold at the closing of the merger. The acquisition is subject to the usual closing conditions, including regulatory approvals and the approval of Palm's stockholders. The transaction is expected to close by July 31, 2010 (HP's third fiscal quarter).

You can read more in HP's press release.