Monday, December 22, 2008

Elevation Injects an Additional $100 Million Into Palm

In a press release issued earlier today, Palm has announced that investment firm Elevation Partners will make an additional $100 million dollar investment into Palm, Inc. Elevation will purchase the additional shares from Palm's newly issued Series C stocks and has paid a 31% premium by acquiring the shares at $3.25 each. The Series C stock issued by Palm has a 0% dividend rate. With the second planned investment of $100 million into Palm, Elevation Partners will have invested about $425 million dollars into Palm.
"The additional capital from Elevation Partners will enable us to put added momentum behind the new product introductions scheduled for 2009 and will provide us with enhanced stability in unsettled economic times," said Ed Colligan, president and chief executive officer of Palm, Inc. "Elevation has been a great partner to Palm, and we appreciate their continued confidence and support."

"We believe that Palm is in a position to transform the cell phone industry, and we are pleased to have the opportunity to make this additional investment in the company. Palm has an industry-leading team and an exciting, differentiated product roadmap. We are proud to be associated with the company and look forward to great things from Palm in 2009 and beyond," stated Roger McNamee, co-founder of Elevation Partners.

The transaction is expected to close by January, 31, 2009. Palm also has the option to trigger a sell action by Elevation of up to $49 million dollars before March 31, 2009 to other investors under the same or better prices.

Read the full Palm press release...

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