The acquisition is designed to strengthen Psion's position in wireless communications, which allows internet access through mobile phones and other handheld devices.
"It is the core technology we need," said Psion chief executive David Levin.
"Teklogix brings with it critical local wireless integration skills," he said.
Under the deal, Psion will combine Teklogix with its Psion Enterprise operations, which focus on the development of handheld devices.
Mr Levin said one of the deal's main assets was the two companies' knowledge of new wireless technologies, such as Bluetooth and the 802.11 radio frequency standard, which provide wireless connections between phones and other electronic devices.
Wireless technology
He said: "Teklogix brings a very rich understanding of the 802.11 standard, and Psion is engaged in Bluetooth. The inter-operation of these technologies is crucial to what this deal is about. It gives us a particular edge."
He also said the deal should not be considered as a pure move by Psion into the North American market.
"Teklogix happens to be based in North America but half its sales are not in America. This is about core technologies, and our acquisition of a high-growth, highly profitable company in its own right," he said.
Psion will pay for Teklogix through a mixture of cash and share swaps, with its offer price representing a 41% premium over Teklogix's closing share price of £11.32 (C$24.90) on Tuesday.
Shareholders can take up to £100m in cash and the rest in shares.
Share price cushion
In order to shield investors from volatility in the technology sector and in Psion's share price, investors will receive fewer Psion shares if the price rises but more if the shares fall.
Psion's shares have fluctuated between 400p and 1,560p since early March.
On Tuesday morning, they were trading about 2.3% lower at 650p.
Mr Levin did not rule out further acquisitions by Psion in the future, but said the company would currently be concentrating on completing the Teklogix deal.
"We will focus very heavily to make it work but to keep looking at further opportunities," he said.
In the year to 31 December 1999, Psion had sales of £150m and pre-tax profit of £5m.
Teklogix had revenues of £95m (C$209m) and pre-tax profit of £15m (C$33m) in the year to 31 March, 2000.