UPDATE 1-QuadraMed agrees to be bought by private equity firm

* Deal valued at about $126 mln in cash

*QuadraMed shares up 30 pct

Dec 8 (Reuters) - QuadraMed Corp QDHC.O, a provider of healthcare software and services, said it agreed to be acquired by private equity firm Francisco Partners in an all-cash deal valued at about $126 million.

Under the terms of the deal, Francisco Partners will acquire all outstanding shares of QuadraMeds common stock for $8.50 per share and the Series A Cumulative Mandatory Convertible Preferred Stock for $13.7097 per share, the company said in a statement.

The proposed purchase price per share of common stock represents a premium of about 32.6 percent to QuadraMed's closing share price of $6.41 on Monday.

Shares of the company rose 30 percent to $8.35 in morning trade on Nasdaq. (Reporting by Shailesh Kuber in Bangalore; Editing by Jarshad Kakkrakandy)