(Reuters) -Australia's PSC Insurance will be acquired by Ardonagh Group in a deal valuing its equity at A$2.26 billion ($1.51 billion), PSC said on Wednesday, helping the UK-based insurance distribution platform expand its footprint in the region.

PSC's diversified insurance services group has over 40 trading brands and operations in Australia and other parts of the world.

The deal, which will see ASX-listed PSC be taken private by the London-based group, comes at a time when the price of policies have been edging higher.

Ardonagh will pay PSC shareholders A$6.19 per share in cash, representing a premium of 7.8% on PSC's last close of A$5.74 on Wednesday.

Earlier in March, the company had disclosed approaches from multiple parties confirming local media reports that indicated U.S.-based Arthur J. Gallagher and the Ardonagh Group were bidding for PSC.

Ardonagh said in a statement it plans to merge PSC's Australia and New Zealand operations with Envest Pty Ltd, an entity acquired by the group in February last year.

The combined unit, which will operate under Envest CEO Greg Mullins, would become one of Australia's largest privately owned insurance distribution platforms, placing A$3.3 billion in gross written premium annually, it added.

The scheme consideration represents an implied enterprise value of A$2.43 billion, including debt.

PSC's board has recommended that shareholders vote in favour of the scheme in the absence of a superior proposal.

Ardonagh said it will be funding 50% of the deal from existing shareholders Madison Dearborn Partners and HPS Investment Partners and the rest from debt including existing and new facilities.

The deal is subject to approval by PSC shareholders and other regulatory obligations, with the scheme currently expected to be implemented in late September.

($1 = 1.5211 Australian dollars)

(Reporting by Roushni Nair in Bengaluru; Editing by Savio D'Souza, Janane Venkatraman and Nivedita Bhattacharjee)