Data communications and telecoms equipment provider Motorola Solutions has agreed to buy rugged handheld device maker Psion for $200m (£128m) in cash.
Motorola Solutions announced the deal on Friday.
"Psion is a compelling opportunity to strengthen our industry-leading, mobile-computing portfolio with ruggedized handheld products and vehicle-mount terminals that will deepen our presence in the global markets in which we compete," Greg Brown, chief executive of Motorola Solutions, said in a statement.
Following completion of the deal, subject to regulatory approval, the resulting unit will be integrated into Motorola Solutions' Enterprise Mobile Computing (EMC) business and will report to Girish Rishi, corporate vice president of the unit.
Psion, which started out in 1980, currently has around 830 employees and delivered revenues of £176m in 2011. The $200m purchase represented a 45 percent premium on the share close price from Thursday.
Motorola Solutions is a separate company to Motorola Mobility which is now owned by Google.