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Psion, the London-based supplier of handheld computers with about 830 staff, has been acquired by Motorola Solutions for £128m.

Psion has acquired Symagery Microsystems, the Canadian provider of image processing services, for £2m.

Psion is looking to spend up to £100m on acquisitions to expand its mobile computing business.

Psion, the manufacturer of handheld computer devices, is to shed 100 jobs and drop plans to develop a wireless personal organiser.

Psion has acquired Tournachon of France for £4.3m, in order to expand its European network for the distribution of electronic organisers.

Psion has acquired Teklogix, the Canadian network integration company, for £243m, as part of a strategy to shift its emphasis from consumer products towards the business market.

Psion is forming an alliance with Motorola to develop mobile internet access devices, and the product development team is expected to have more than 100 staff.