Palm shareholders have approved the partial sale of the company to private-equity firm Elevation Partners.

The company has confirmed that stockholders approved proposals that will permit Palm to conclude a $325 million investment by Elevation Partners, borrow up to $400 million in an associated debt financing, make a cash distribution of $9 per share to Palm stockholders, and make related adjustments to its equity plans.

The shareholders also elected Gordon Campbell and Donna Dubinsky as Class II directors to serve until the annual meeting of Palm stockholders to be held in 2010.

"We appreciate our stockholders' strong support of these proposals and look forward to an era of renewed innovation and focused execution at Palm," said Ed Colligan, president and CEO.

In connection with this transaction, Palm will appoint former Apple iPod chief Jon Rubinstein as executive chairman of the board.

Roger McNamee and former Apple chief financial officer Fred Anderson, both of Elevation Partners, will also join the company's board.

Rubinstein – who ran the iPod division at Apple between 2004 to 2006 and led creation of Apple's Macs prior to that – was central to the executive team that joined Apple after Steve Jobs returned to the company.