Feeds

Palm buys Extended to fuel corporate push

Acquistion prompts reorganisation

  • alert
  • submit to reddit

Providing a secure and efficient Helpdesk

Palm has bought corporate mobile data company Extended Systems in a stock-swap worth $264 million. Shareholders and regulators permitting, Palm will offer $22 of its own stock for each Extended share.

Extended produces software and systems that hook mobile workers into corporate networks, allowing them to use network resources such as printers, and synchronise their contact and agenda data.

The company also develops Bluetooth enabling software to let mobile devices communicate with corporate systems while their users are roaming company sites.

Such functionality is essential to Palm's push into the corporate market, a move designed to pitch the company's products as a key enterprise tool and not just toys for senior executives.

Palm is only interested in Extended's code - the hardware side of the business is to be abandoned at a cost of $15 million, Palm CFO Judy Bruner said yesterday. It will also lose Palm 54 per cent - $13.8 million - of Extended's revenue. Extended's hardware product line includes print servers and virtual private network devices.

The most interesting part of the deal is Extended's support for multiple palmtop platforms - which Palm is apparently eager to maintain. Since corporates are notoriously unhappy at changing what hardware they have chosen to support, Palm has to be willing to continue to support PocketPC, EPOC et al.

However, there's something in the tone of Palm CEO Carl Yankowski's public comments on the deal and in an interview with CNET that suggests Palm is actually quite keen on the idea. That will fuel speculation that the company intends to spin off its hardware business. That's increasingly seen as a wise move, to ensure the company is correctly valued as a software business and to prevent licensees fearing that Palm's ownership of OS and hardware may lead to what they would consider an unfair competitive advantage.

The incorporation of Extended's business into Palm will prompt a reorganisation of the company's structure. Extended will become Palm's Enterprise Solutions Group under Extended CEO Steve Simpson. An Individual Solutions Group will take over the hardware, content and wireless access products. Finally, Palm COO Alan Kessler will run the PalmOS development and licensing operation. ®

Providing a secure and efficient Helpdesk

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Apple CEO Tim Cook: TV is TERRIBLE and stuck in the 1970s
The iKing thinks telly is far too fiddly and ugly – basically, iTunes
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.