PalmSource completes CMS acquisition

Handheld operating system developer PalmSource announced Thursday that it has completed its acquisition of China MobileSoft. In a deal valued at approximately $16 million, PalmSource issued about 1.6 million shares of stock in exchange for outstanding equity and rights to acquire equity in China MobileSoft. MobileSoft makes software for use in wireless phones and has been developing a version of Linux for mobile devices.

CMS currently has 10 licensees shipping CMS software on more than 30 phone models in China. Palm OS maker PalmSource says the acquisition gives it a reach into the Linux market. Jiping Wang will continue as CEO of the acquired company and will report to David Nagel, PalmSource president and CEO.