HP is going to acquire Palm in a deal worth about $1.2 billion. HP, which has a long history of making smartphones using Microsoft Windows Mobile operating system, will switch to Palm’s webOS.

Palm is going to be run as a separate business unit inside of HP. Palm is going to contribute its expertise in developing what HP describes as a ”world-class mobile operating system and platform” while HP is going to give Palm the financial backing the company needs to compete successfully with larger rivals like Microsoft and Google.

Read more here.