UPDATE 1-Verizon to buy Hughes Telematics for $612 million

* Says $12-per-share deal is 176 pct premium

* Sees Q3 deal close pending regulatory approval

June 1 (Reuters) - Verizon Communications Inc said on Friday that it would buy Hughes Telematics Inc for $612 million in cash as it looks to beef up its enterprise business with machine-to-machine communications services in automotive and other industries.

The offer of $12 per share is a premium of 176 percent over Hughes’ Thursday closing price of $4.35 on the over-the-counter Bulletin Board.

Hughes Telematics offers location-based services for consumers, manufacturers, fleets and dealers through two-way wireless connectivity.

Verizon spokesman Robert Varettoni declined to comment on the financial impact of the deal beyond saying that the company sees it as a “long-term revenue growth opportunity.”

Verizon, which expects the deal to close in the third quarter, said it planned to retain Hughes’ management team and operate the business as a subsidiary in its Enterprise Solutions department.

The boards of both companies and holders of a majority of Hughes voting shares have approved the deal, which is subject to U.S. antitrust approval and other closing conditions, Verizon said.

Verizon was advised by UBS Investment Bank and Debevoise & Plimpton LLP for the deal while Hughes was represented by Barclays and Skadden, Arps, Slate, Meagher & Flom LLP. A special committee of Hughes board was represented by Moelis & Company LLC and Nelson Mullins Riley & Scarborough LLP.