Palm Inc. said Wednesday it closed a deal to sell 27 percent of itself to private equity firm Elevation Partners and pay a one time distribution to shareholders of $9 per share.

According to the Associated Press, Elevation invested $325 million in Palm, which in turn will pay shareholders about $950 million financed by cash on hand and newly assumed debt. Palm indicated that shareholders of record at Wednesday's market close should receive their payments in around two weeks.

The deal was first announced in June, brings in new leadership to the company's board, and is likely to satisfy investors with a large cash payout, while making the company a less attractive take over candidate due to reduced cash and higher debt levels.

Apple Inc.'s former senior vice president of hardware engineering, Jon Rubinstein, joined the board of Palm as executive chairman and will help lead Palm's engineering teams, which will also be comprised in part with former Apple executives. Elevation partners' Fred Anderson and Roger McNamee also joined the Palm board, replacing Eric Benhamou and Bruce Dunlevie.

Palm shares increased 17 cents to close Wednesday at $19.19. This adds to a nearly $2 per share price increase over the past week.

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