Former Apple iPod Boss Joins Palm
Published on: 3rd Jun 2007
Note -- this news article is more than a year old.
Palm has announced a significant investment from the private equity firm Elevation Partners and that the former head of the iPod division at Apple is joining the company.
Elevation will invest USD325 million in Palm, and the company will utilize these proceeds along with existing cash and $400 million of new debt to finance a cash payment to shareholders.
Upon closing of the transaction, Jon Rubinstein, former senior vice president of hardware engineering and head of the iPod division at Apple, will join Palm as executive chairman of the board.
Fred Anderson and Roger McNamee, managing directors and co-founders of Elevation, will join Palm's board of directors upon closing of the transaction. Rubinstein, Anderson, and McNamee will replace Eric Benhamou and D. Scott Mercer, who will resign from Palm's board of directors at that time. The total number of directors on the board will be increased from eight to nine in connection with the transaction.
Jon Rubinstein added, "I have tremendous respect for Ed Colligan, Jeff Hawkins and their team, and I am thrilled by the prospect of helping Palm deliver innovative products capable of transforming the mobile-device market. Approximately 1 billion cell phones are sold each year, and mobile computing is a category with enormous potential. This is a company with an impressive history of introducing game-changing products ? it pioneered the smartphone ? and I intend to help extend that legacy."
Upon completion of the transaction, Elevation will own approximately 25 percent of Palm. The company has also secured commitments for $400 million of new debt and a $40 million revolving credit facility which is not expected to be drawn at closing."