Access Co., a Japanese information equipment software developer, said Friday it will buy PalmSource Inc. (PSRC) in a Y35.8 billion bid to expand its mobile device software line. The Japanese firm, which develops and sells software under consignment for NTT DoCoMo Inc.’s third-generation FOMA handsets, plans to merge the U.S. mobile-device software with its U.S. unit.
The deal is expected to close by the end of the year, Access said in a press release. Both companies’ boards have approved the merger. PalmSource, developer of the Palm OS operating system, said separately that the offer price translates to $18.50 a share, an 83% premium to its Thursday close of $10.09. Access’ shares extended earlier gains on the news. The stock ended the day up 2.6% at Y2,810,000, after hitting an earlier high of Y2,870,000.
Access will pay cash to PalmSource shareholders in exchange for their shares when its Wilmington-based unit Apollo MergerSub Inc. and PalmSource merge, the Japanese company said.
Access said obtaining PalmSource’s user interface, application and research and development capabilities for mobile phone handsets will help boost its bottom line. It said it’s determining the impact on its earnings estimates and will provide further details at a later date.