Handspring to Acquire Bluelark Systems in Stock Deal

Handspring

(HAND)

said Tuesday it has agreed to acquire

Bluelark Systems

, a developer of wireless Internet software, for up to 450,000 shares of its common stock.

Handspring, maker of handheld computers, said Bluelark's software and infrastructure for Web browsing will become a "key application" for Handspring products.

The deal is expected to close in the first quarter of 2001 and is subject to the approval by Bluelark shareholders and other conditions.

Shares of Handspring finished down 19 cents, or 0.52%, to $35.88 in Tuesday

Nasdaq

trading, and slipped to $35 in recent after-hours Island trading.