Davis Polk & Wardwell is advising Palm, Inc. in connection with Elevation Partners’ agreement to make an additional $100 million equity investment in Palm. Under the terms of the agreement, Elevation will increase its investment in Palm by acquiring newly issued Series C preferred stock that is convertible into Palm common stock at a price of $3.25 per share, a 31% premium to the closing price of Palm common stock on December 19, 2008. Elevation will also receive warrants to acquire 7 million shares of Palm common stock at the same price.

Palm is a leading mobile products company, creating instinctive yet powerful mobile products that enable people to better manage their lives on the go. Elevation is a $1.9 billion private equity firm that makes large-scale investments in market-leading media, entertainment, and consumer-related businesses where it can partner with management to enhance growth and profitability through a combination of strategic capital and operational insight.

The Davis Polk corporate team includes partners William M. Kelly and Sarah K. Solum and associates Sam Kelso, Peter M. Lamb, Robert J. Maynes, Colin Sturt, Shan Jiang and Patrick Spencer. The tax team includes partner Rachel D. Kleinberg and associate M. Ryan LaRosa. Michael Nguyen is the legal assistant on the transaction. All members of the Davis Polk team are based in the Menlo Park office.