UPDATE 1-AsiaInfo agrees to buy Linkage for $733 mln

NEW YORK Dec 6 (Reuters) - AsiaInfo Holdings Inc (ASIA.O), which provides IT services to the Chinese telecoms industry, agreed on Sunday to buy Linkage Technologies International Holdings Ltd in a cash and stock deal worth about $732.7 million.

Under the terms of the deal, Linkage shareholders will receive $60 million in cash and about 26.8 million AsiaInfo shares. AsiaInfo's shares closed up 6 cents at $25.10 on Nasdaq on Friday.

Legacy shareholders of Linkage, which is based in Nanjing, China, will own about 35.8 percent of the merged company, to be called AsiaInfo-Linkage Inc. The transaction is expected to add to non-GAAP earnings per share in 2010.

The transaction is expected to close by the end of the first quarter or early in the second quarter of 2010. (For more M&A news and our DealZone blog, go to www.reuters.com/deals) (Editing by Leslie Adler)