TOKYO, Sept 9 - According to Reuters, major Japanese software developer Access Co. is making U.S. software developer PalmSource Inc. wholly owned in a 34.4 billion yen (or approximately $311.3 million) cash deal.

PalmSource is the company responsible for the Palm operating system. This acquisition ends speculation that PalmSource's sister company Palm, Inc., the hardware manufacturer of the Treo 650 smartphone, would acquire PalmSurce, and lends credibility to the speculations that Palm Inc. may instead be planning to adopt a Microsoft operating system for future Treo models such as the rumored Treo 670.

The acquisition will allow Access Co. to strengthen its development of software for mobile platforms. "We expect the acquisition... to help strengthen our capability to develop software for handheld devices," Access said.

Access will pay cash to shareholders of PalmSource, which will be later absorbed by Access' U.S. unit Apollo Merger Sub Inc., Access said in a statement.

PalmSource has been struggling to win new licensees for its Palm operating system in the face of increased competition from Microsoft Corp. and announced in June restructuring including a 16 percent cut in its workforce.

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