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Palm to buy Handspring

Palm is set to buy Handspring and spin off its PalmSource subsidiary as a separate company.

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Palm is to buy Handspring and spin off its PalmSource subsidiary as a separate company.

Palm is made up of two companies; PalmSource, which develops the Palm operating system, and Palm Solutions Group. After the spin-off of PalmSource, Palm Solutions Group will merge with Handspring to create a new company, to be renamed later in the year.

The merged company will be led by Todd Bradley, the Palm Solutions Group president and chief executive officer. It will be split into two business units, one focused on handheld computing and one on smart phones.

Ken Wirt, Palm's senior vice president of sales and marketing, will run the handheld unit, while Handspring chairman and chief operating officer Ed Colligan will run the smart phone side.

Jeff Hawkins, Handspring chairman and chief product officer, will become the new company's chief technology officer.

Hawkins set up Palm in 1992 with Donna Dubinsky, and both left along with Colligan in 1998 to set up Handspring.

Gillian Law writes for IDG News Service

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