PalmSource has completed its acquisition of China MobileSoft (CMS).
CMS is a Chinese mobile phone software company. CMS and its subsidiaries currently offer operating systems and other software for both smartphones and simpler featurephones.
PalmSource intends to give all CMS’s products the Palm OS look-and-feel and data compatibility.
Organizational and Financial Details
Jiping Wang will continue as CEO of the acquired company and will report to David Nagel, PalmSource president and CEO. Madeline Duva will join PalmSource as vice president, silicon and ODM partners. John Ostrem, founder, chairman and CTO of CMS, will join PalmSource as lead scientist.
PalmSource issued approximately 1,570,000 shares of PalmSource common stock in exchange for the outstanding equity and rights to acquire equity in CMS for a total purchase price of approximately $16 million.
In connection with the acquisition, PalmSource’s compensation committee approved the issuance of restricted stock, with a two year vesting schedule, and stock options, with a four year vesting schedule and exercisable at fair market value, totaling 219,966 shares to a total of 141 employees and consultants as part of the incentive plan to retain their services following the acquisition.