After searching for a potential buyer for some time, it appears Palm has finally found someone to bring them out of their financial woes. Today HP has announced that they will be acquiring Palm for $1.2 Billion, or $5.70 per share. After confirming the buy out, the two companies hosted a conference call where they went over the details of the merger. They mentioned that they would be “doubling down on webOS” and expect the Palm developed OS to grow substantially thanks to the new resources. HP also said that between phones, tablets, and other devices, there is much potential for webOS to be used in those kinds of devices.

“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.”

What happens to the Palm Pre and Pixi? They aren’t going anywhere, and HP is planning to grow more platforms from webOS. There is no word yet on exactly how HP plans to do this, whether they will port webOS to existing devices like the HP Slate, or if they will be building new hardware. HP also mentioned that their partnership with Microsoft will continue despite the new acquisition. They will create a new business unit within HP that will operate under the direction of Palm CEO Jon Rubinstein, who will stay with the company. It seems HP and Palm are getting ready to take on the big companies like Apple, Google, and Microsoft. This means turning out some very interesting products in the future, including smartphones, tablets, and who knows what else. Will this bring Palm back from the brink of death? Will it make HP more competitive in the ever growing market? We will have to wait and see what happens after the merger takes place.