Update: The acquisition is now complete. See releases from HP and Palm.

Original Article (04/28): Hewlett-Packard just announced its intent to buy Palm for $1.2 Billion at $5.70 per share. The transaction has already been approved by the HP and Palm boards of directors.

The move was made to give HP a better shot at winning some smartphone marketshare – an industry quickly growing.

"Palm’s innovative operating system provides an ideal platform to expand HP’s mobility strategy and create a unique HP experience spanning multiple mobile connected devices,” said Todd Bradley, executive vice president, Personal Systems Group, HP. "And, Palm possesses significant IP assets and has a highly skilled team. The smartphone market is large, profitable and rapidly growing, and companies that can provide an integrated device and experience command a higher share. Advances in mobility are offering significant opportunities, and HP intends to be a leader in this market."

"We’re thrilled by HP’s vote of confidence in Palm’s technological leadership, which delivered Palm webOS and iconic products such as the Palm Pre. HP’s longstanding culture of innovation, scale and global operating resources make it the perfect partner to rapidly accelerate the growth of webOS," said Palm CEO Jon Rubinstein. "We look forward to working with HP to continue to deliver industry-leading mobile experiences to our customers and business partners."

Rubinstein, is expected to remain with the company.