Menu
Bono found what he was looking for

Bono found what he was looking for

Palm's financial future looked a little more secure this week as private-equity firm Elevation Partners said it will pump US$325 million into the mobile device manufacturer. Elevation is a $1.9 billion private-equity firm and one of its five partners is Bono, the lead singer of Irish rock band U2

In recent months, rumours have swirled that Palm would be acquired by either Motorola or Nokia, as the company faces aggressive competition in the smartphone market.

The recapitalisation plan will see Elevation take a 25 percent equity stake in Palm, valuing the company at $8.50 per share, a premium of around 16 percent compared with the stock's performance over the last 10 trading days. The investment in Palm is by far the largest Elevation Partners has ever made.

The device maker has also secured $400 million and a $40 million revolving credit facility. Palm will use the proceeds from the sale of its stock and the proceeds from the new debt to fund a $9 per share cash distribution to its shareholders, excluding Elevation. The total amount of money shareholders will receive will be around $940 million. Palm expects the move will leave it with more than $300 million of cash on its balance sheet.

Subject to shareholder approval and other closing conditions, Palm expects to complete the recapitalisation in the third quarter of this calendar year.

Along with its handheld devices and Treo smartphones, Palm last week debuted a handheld computer called Foleo, which it calls a smartphone companion device.


Follow Us

Join the newsletter!

Or
Error: Please check your email address.

Tags treoPalmU2BonoFoleo

Featured

Slideshows

Bumper channel crowd kicks off first After Hours of 2018

Bumper channel crowd kicks off first After Hours of 2018

After Hours made a welcome return to the channel social calendar with a bumper crowd of partners, distributors and vendors descending on The Jefferson in Auckland to kick-start 2018. Photos by Gino Demeer.

Bumper channel crowd kicks off first After Hours of 2018
Looking back at the top 15 M&A deals in NZ during 2017

Looking back at the top 15 M&A deals in NZ during 2017

In 2017, merger and acquisitions fever reached new heights in New Zealand, with a host of big name deals dominating the headlines. Reseller News recaps the most important transactions of the Kiwi channel during the past 12 months.

Looking back at the top 15 M&A deals in NZ during 2017
Kiwi channel closes 2017 with After Hours

Kiwi channel closes 2017 with After Hours

The channel in New Zealand came together to celebrate the close of 2017, as the final After Hours played out in front of a bumper Auckland crowd.

Kiwi channel closes 2017 with After Hours
Show Comments