Hewlett Packard (HPQ) agreed to buy troubled smartphone maker Palm for $1.2 billion in cash. The HP deal couldn’t have come at a better time for Palm. Palms was burning through cash at an alarming rate. HP will pay $5.70 per share for Palm’s shares. It looks like a good deal for HP which was able to buy Palm at a modest price. HP will be entering a new market where the computer retailer will be trying to wrestle market share away from Apple, Google, and Research in Motion. Shares of Palm are currently trading at $5.91 which is above the deal price.