Palm has changed its name to palmOne following stockholder approval of the proposed Palm and Handspring merger, and has agreed to spin off its PalmSource software division as a separate company.
PalmOne will now have three product lines: the two handheld ranges (the Zire and Tungsten series) and the Trio connected PDA and smartphone range.
PalmSource will work on Palm software development and will be separately quoted on Nasdaq.
Several of the original PalmPilot development team are staying with the company.
Jeff Hawkins, who set up Palm originally, is palmOne's chief technology officer. Ed Colligan, another original Palm employee, will head the wireless division. There will be no lay-offs in palmOne's core business from the merger with Handspring.
"The savings will come in the back end," said Vesey Crichton, vice president of Palm in Europe, the Middle East and Africa.
The existing hardware development team at palmOne is unchanged and the Handspring engineers are forming a wireless team which will work alongside them.
Handspring stockholders will be issued with 13.9 million shares - 0.09 Palm shares for each Handspring share owned. The newly named palmOne will trade on the Nasdaq stock market.
At Palm's annual stockholders meeting it was agreed that Palm's 86 per cent stake in PalmSource would be distributed among stockholders. They will receive approximately 0.31 shares of PalmSource common stock for each Palm share they own, which will also trade on the Nasdaq.
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