HP is buying Palm for a reported $1.2 Billion or $5.70 Per Share according to Reuters, Palm has not been doing to great lately and many thought Lenovo were going to acquire Palm.

HP (Hewlett-Packard) has now struck a deal with Palm to buy them in the hope to expand the smartphone market, Palm once were the mobile firm that topped the market but have now suffered thanks to rivals like Apple with its iPhone and RIM with its BlackBerry devices.

The deal that was reached says that HP will pay $5.70 cash per share of Palm, they are hoping this deal will be finalised by its Q3 fiscal ending July 31.

Do you think HP can turn Palm and its smartphone market around, or do you think HP has something completely different up its sleeve?