HP and Palm announced on Wednesday that the companies have entered into a definitive agreement for HP to buy Palm. HP will purchase the company for $1.2 billion or $5.70 per share. Palm stock is currently trading for $4.63 on the Nasdaq.

“Palm’s innovative operating system provides an ideal platform to expand HP’s mobility strategy and create a unique HP experience spanning multiple mobile connected devices,” said Todd Bradley, executive vice president, Personal Systems Group, HP.

Palm CEO, Jon Rubinstein, is expected to remain with the company after the merger is complete.