LONDON (07/12/2000) - U.K.-based mobile device provider Psion PLC has entered a merger agreement with Canadian wireless networking company Teklogix International Inc., the companies announced Wednesday.
Psion will pay 100 million pounds (US$152 million) in cash, with the remainder of the C$544 million (US$368 million) purchase being in Psion ordinary or exchangeable shares.
Teklogix develops, designs and manufactures large-scale wireless networking systems and integration services for supply chain and inventory management.
Teklogix's systems are mainly used by large organizations in the manufacturing, retail and transportation and service industries.
Psion hopes to gain a foothold in the industrial market through this purchase, said Claes Bergstedt, director of Psion enterprise computing, calling the purchase "one of Psion's most significant acquisitions in the last decade."
"They bring a new dimension to Psion in the local wireless network," he said.
"Psion benefits because we now have a much bigger focus in the industrial marketplace."
Teklogix also already has significant revenue streams in both Europe and the U.S., with approximately 35 percent of Fortune 500 companies as customers, Bergstedt said. Both Dell Computer Corp. and Compaq Computer Corp. are Teklogix customers.
Psion, in London, can be reached at +44-20-7317-4100 or at http://www.psion.com/. Teklogix, in Mississauga, Ontario, can be reached at +1-905-813-9900, or on the Web at http://www.teklogix.com/.