UPDATE 1-Z Group to buy UK consultancy Avisen for 4.5 mln stg

* Z Group to issue 86.7 mln shares

* To change name to Avisen Plc post merger

* Shares rise 24 percent (Adds details, share movement)

Jan 7 (Reuters) - UK-based investment firm Z Group Plc ZGP.L agreed to acquire Avisen Group Ltd, a business and technology consultancy, for 4.55 million pounds ($6.78 million) in stock, sending its shares up 24 percent.

Z Group will issue about 86.7 million new shares to buy Avisen, which has clients like Heineken (HEIN.AS) and BAE Systems (BAES.L).

Following the deal, Z Group will change its name to Avisen Plc and expects the shares to be listed on AIM by Feb. 2, the company said in a statement on Wednesday.

Z Group's non-executive Chairman Jon Claydon will retain the position in the new company, while Marcus Hanke, Managing Partner of Avisen, will become its chief executive.

Avisen Group had a pretax profit of 320,883 pounds for the six months ended Sept. 30, 2008, with a revenue of 1.73 million pounds. Its Solution Minds and Harvey Jones businesses have a strong outlook for the first quarter of 2009, the statement said.

At 1020 GMT, Z Group shares were up 1.25 pence at 6.50 pence. ($1=.6713 Pound) (Reporting by Usman Merchant in Bangalore; Editing by Gopakumar Warrier)