Handheld computer company Psion has bought Canadian-based data and communications group Teklogix for 242m, writes Maggie Hartford.

Psion's enterprise division, based at Milton Park, near Abingdon, will now be run by Ian McElroy, currently president and chief executive of Teklogix.

It employs 250 people making industrial terminals used by meter readers, warehouse operatives and other skilled tradespeople.

Mr McElroy will join the Psion board and run the combined business of Teklogix and the Psion enterprise division from Canada. Psion said the deal would provide it with leading-edge technology which it will use to exploit the mobile Internet market over the coming years. It will pay for the deal with a mixture of cash and Psion shares.

Psion commercial director Mr Claes Bergstedt, based at Milton Park, said: "It should mean we ship a lot more products out of this building because we will be able to sell more through Teklogix, which has a long list of blue-chip customers including Cadbury Schweppes, Hertz, Volkswagen and Honda Europe."

Teklogix's '802.11' wireless technology would provide a good fit with Psion's 'Bluetooth' technology, which enables electrical devices to communicate with one another and share data over short distances without the need for cables.

Dr David Potter, chairman of Psion, said: "In the emerging age of the mobile Internet, more and more people will depend upon personal, wireless access to the Internet, wherever they are. Mobile internet will empower them in their work and personal lives with information communications, services and entertainment."

Ian McElroy, president and chief executive of Teklogix, said: "I am delighted that Teklogix is joining the Psion group of companies and will help drive its growth as mobile telecommunications and computing technologies converge.

"The two companies are a great fit, in terms of geography, technology customer base and culture."