Japan’s Access Buys PalmSource for $324 Mln

Japanese software developer Access announced it's buying PalmSource, makers of the Palm OS, for $324 million to strengthen its mobile phone software portfolio.

Japanese software maker Access Co. (Japanese site; U.S. site) announced today it is buying U.S.-based PalmSource Inc. for $324 million. PalmSource will become a wholly-owned subsidiary of Access and will significantly broaden the company’s software products for mobile phones and PDAs.

PalmSource develops the Palm OS, the operating system used in millions of Palm and Palm-compatible devices, including the Zire and Tungsten handheld PDAs and the Treo smartphones. With the acquisition, Access also gains access to Linux development resources stemming from PalmSource’s previous acquisition of China’s Mobilesoft. Toru Arakawa, CEO of Access, said "By combining Access’s robust NetFront browser platform and its proven business relationships with PalmSource’s advanced operating system, application portfolio, user interface and developer communities, we will be able to produce a comprehensive yet flexible solution for the mobile market."

The takeover is expected to be completed by the end of 2005, pending approval of PalmSource’s shareholders and regulatory agencies.