RealTime IT News

PalmSource Curries Favor with SVB

Hoping to keep its momentum up right out of the gate, PalmSource Monday said it has inked a deal to make Silicon Valley Bank (SVB) its primary banking partner.

The deal with the Silicon Valley Bancshares subsidiary includes an introductory $15 million line of credit that Sunnyvale, Calif.-based PalmSource said will be earmarked for working capital purposes.

"We are delighted to have established a financial relationship with a highly regarded institution that understands our business and our banking needs", PalmSource CFO Al Wood said in a statement. "We believe the support of SVB is an important factor in strengthening PalmSource's financial foundation for the future."

This is the second major investment to the Palm subsidiary. Last October, Sony plunked down $20 million for a 6 percent stake in the company behind Palm operating system.

Editor's note: PalmSource CEO David Nagel talks about the Sony investment in an exclusive interview with internetnews.com.

Currently, PalmSource is preparing to splinter off from its parent company, which could happen as early as October 28, when shareholders will vote on a three-part transaction. If approved, Palm would acquire Handspring and then split itself into two companies: PalmSource and palmOne. The "PALM" ticker symbol would split into PalmSource's "PSRC" and palmOne's "PLMO."

PalmSource's business model will focus on developing and licensing the Palm OS platform for handheld computers and smartphones. The company is already licensed by handheld companies such as Aceeca, AlphaSmart, Fossil, Garmin, GSL, Handspring, HuneTec, Kyocera, Lenovo, Palm Solutions Group, Samsung, Sony, Symbol and Tapwave as well as Palm OS Ready Partners including ATI, Intel, MediaQ, Motorola, M-Systems, Samsung, Texas Instruments. The company boasts its OS has been shipped on more than 30 million handhelds and smartphones.

The OS company says it is already making serious headway into new markets including a collaboration with IBM to advance the development of next-generation Web Services applications for Palm Powered devices.

In its 20-year history, SVB has supported more than 30,000 entrepreneurial companies, including some of the best-known companies in the technology industry.

"We recognize the significant opportunities that lie ahead for PalmSource and we're excited to welcome the company into our expansive portfolio of technology leaders and innovators," said Maria Fischer Leaf, senior vice president, Silicon Valley Bank. "We've found the PalmSource approach to building relationships mirrors our philosophy of working closely with our clients and we're looking forward to serving their long-term financial needs."