Palm announced yesterday that it will sell a 25 percent stake to Elevation Partners for US$325 million. Palm, Inc. today announced a strategic relationship with the private-equity firm Elevation Partners (“Elevation”) and a recapitalization plan that will position Palm to lead the next phase of the smartphone and mobile-computing markets.
As part of the agreement, Jon Rubinstein, former senior vice president of hardware engineering and head of the iPod division at Apple, will become Palm’s executive chairman of the board. Two other Elevation partners, including Fred Anderson, a former Apple CFO, will also join the board.
The agreement is expected to close in the third quarter this year.