Motorola Solutions has confirmed plans to purchase UK firm Psion for £129m.
Psion specialises in creating technology and software designed for industrial use with its headquarters situated in London. The company has approximately 830 employees and customers in over 50 countries.
Motorola Solutions chief executive Greg Brown said the firm had made the deal as it sees a natural fit between the two firm's products and would help it remain competitive within the industrial sector.
"Psion is a compelling opportunity to strengthen our industry-leading, mobile-computing portfolio with ruggedised handheld products and vehicle-mount terminals," he said.
The deal will see Motorola Solutions purchase Psion shares for 88p, a 45 per cent mark up on the company's current price of 60.5 pence per share, as of 14 June.
The deal is set to close in the fourth quarter of 2012 following regulatory approval.
Motorola Solutions is a separate company to Motorola Mobility, which was acquired by Google for $12.5bn earlier this year. The acquisition took place amid a slew of patent infringement cases between Motorola and Apple.
One of these case recently turned in Apple's favour after US court's ruled that Apple's attorneys will be allowed to plead their case for an injunction blocking the sale of some Motorola smartphones.
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