Japan's Access to buy PalmSource for $324m

Japanese software company Access is to buy mobile operating system company PalmSource for around $324m.

PalmsSource develops the Palm OS operating system for phones and mobile devices, while Access is know for its NetFront browser technology for mobile devices and consumer electronics products including digital TVs.

Access said that with the acquisition of PalmSource it gains operating system platform expertise and Linux development resources for mobile devices in China, France and the US.

Access CEO Toru Arakawa said in a statement: "By combining Access's robust NetFront browser platform and its proven business relationships with PalmSource's advanced operating system, application portfolio, user interface and developer communities, we will be able to produce a comprehensive yet flexible solution for the mobile market."

The company said the PalmSource family of software products run on more than 39 million devices, and has a community of around 400,000 mobile application developers.

Arakawa said PalmSource's earlier acquisition of Linux developer China MobileSoft will help promote Linux-based platforms for mobile devices.

PalmSource interim CEO Patrick McVeigh added in a statement: "We believe the customer and technology synergies of the combined companies will open up new market opportunities for both companies worldwide."

The acquisition is expected to be completed by the end of 2005.