Psion spends millions on Canadian wireless group

Reckons it's the most important buy it's ever made

Psion has agreed to buy Canadian wireless technology and software development group Teklogix for C$554 million (£243 million).

The London company's offer is made up of £100 million cash and the remainder in shares. Teklogix shareholders stand to get around 2.3 Psion shares and cash that will value each share at C$35 - 41 per cent higher than yesterday's closing price.

Psion chairman David Levin described the deal as "far and away the most important acquisition Psion has ever made".

"It is the core technology we need... Teklogix brings with it critical local wireless integration skills." The deal is expected to be completed by September.

Teklogix, based in Toronto, has 600 staff and makes systems that let mobile workers stay in touch and allow companies to monitor information. Its customers include Dell.

The deal came the day after Psion announced it was forming a £9.5 million joint venture with United News and Media to offer mobile Internet services. The handheld computer company also said it was paying £1.1 million for Fonedata, a British wireless Web portal. ®

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