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PalmSource Inc., which has seen its share of
the handheld computer market plummet, said on Wednesday that it has agreed
to acquire China MobileSoft Ltd. as a step into the potentially lucrative
Chinese mobile-phone market.
By acquiring CMS, PalmSource would get its ongoing development of a version of the Linux operating system for advanced cellular phones, often called "smartphones," and other wireless devices. PalmSource currently sells two proprietary OSes, Palm OS Garnet and Cobalt. Under the deal, PalmSource, based in Sunnyvale, Calif., would issue 1.57 million shares of common stock in exchange for the outstanding equity and rights to acquire equity in CMS. Based on PalmSource's opening stock price Wednesday of $14.45, the deal is worth about $22.7 million. |
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