U.S. Robotics Acquires Palm Computing, Inc.
SKOKIE, Ill. — September 5, 1995 — U.S. Robotics Corporation (NASDAQ:USRX) today announced the acquisition of Palm Computing, Inc. (Palm). As a result of the transaction, which occurred on September 1, 1995, Palm became a wholly-owned subsidiary of U.S. Robotics. Palm's outstanding capital shares were converted into U.S. Robotics shares worth approximately $ 44 million.
The transaction will be accounted for as a pooling-of-interests; U.S. Robotics will restate prior period earnings to reflect the transaction when it reports its results for the fourth quarter and year ending October 1, 1995. The effect of the restatement will not be material.
Headquartered in Los Altos, Calif., Palm develops operating system and applications software for hand-held computers and communication devices. Palm's products also include personal information management applications, desktop-to-hand-held computer connectivity software and Graffiti power writing technology.
"We are extremely impressed with Palm's people and products," said U.S. Robotics Chairman, President and CEO Casey Cowell. "Palm will be a real asset as we push our communications product strategy beyond the desktop computer and into the pockets of individual users. We are committed to reaching all communications markets."
U.S. Robotics is one of the world's leading suppliers of products and systems that provide access to information. The company designs, manufactures, markets and supports remote access servers, enterprise communications systems, desktop/mobile client products and modems that connect computers and other equipment over analog, digital and switched cellular networks, enabling users to gain access to, manage and share data, fax and voice information. Its customers include Internet service providers, regional Bell operating companies and a wide range of other large corporations, businesses, institutions and individuals. The company's 1994 sales were $ 499.0 million; sales for the first nine months of fiscal 1995 were $ 596.0 million.
Note to Editors: All products mentioned are trademarks or registered trademarks of their respective manufacturers.
CONTACT:
U.S. Robotics Corporation
Karen J. Novak, 708/982-5244 (media relations)
C. David Hall, 708/982-5162 (investor relations)