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November 15, 2005

Access completes PalmSource acquisition

Browser vendor Access Co Ltd has completed its $322.4m acquisition of PalmSource Inc, a deal designed to create a new force in the field of software for mobile devices.

By CBR Staff Writer

By injecting a Linux kernel into its operating system, PalmSource hopes to generate new interest, particularly in the fast-developing market in China. The addition of Access’s browser means it now has a complete offering for companies looking for an alternative to the Symbian or Microsoft software that has dominated western markets.

Despite an indifferent financial record, there was a three-way battle to buy Palmsource between Access, Motorola, and an unnamed company. Motorola, which thought it had a deal to buy the company, is taking legal action for breach of contract.

PalmSource was formed when Palm Inc split its hardware and software operations in 1993. However, the current Palm CEO Ed Colligan told Computer Business Review in October that if it been up to him, he would probably not have spun off Palm’s former operating system arm.

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