(Adds details on deal from Quindell statement)
SYDNEY, March 30 (Reuters) - Australian law firm Slater &Gordon Ltd said on Monday it agreed to buy a unit ofBritish technology and outsourcing company Quindell Plc for A$1.2 billion ($928.1 million), in a bid to penetrate thehighly fragmented UK personal injury market.
Slater & Gordon said it was seeking to raise A$890 millionin new equity to fund the acquisition of Quindell's ProfessionalServices Division (PSD).
Quindell's shares rose as much as 30 percent to 180 penceper share on Monday morning on the London Stock Exchange.
"The combination of Slater & Gordon and PSD creates thenumber one personal injury law firm in the UK," Slater & GordonManaging Director Andrew Grech said. "It further diversifies oursources of legal work, broadening access to claims managementcompanies, insurers and insurance brokers."
Quindell's chief executive, Robert Fielding, will joinSlater & Gordon and Richard Rose will be named non-executivechairman if the deal goes through, the company said in astatement.
Shares in Quindell have slumped since short-seller GothamCity Research questioned the company's revenue model and profitquality last April.
Quindell, which lists Aviva Insurance Plc, BritishAmerican Tobacco Plc and Royal Mail Plc amongits customers, rejected Gotham City's concerns.
Before the Slater & Gordon deal was announced, Quindell saidthe division's sale would improve its working capital profile.
Quindell said on Monday that it intends to use the proceedsfrom the sale to return cash to shareholders and repay debt. Itexpects to return about 500 million pounds ($741.80 million)initially.
The deal, expected to close in May, is conditional on amajority vote by Quindell shareholders, which is scheduled forApril 17.
Slater & Gordon said Quindell's board has unanimouslyrecommended shareholders accept the offer and that it hasalready secured firm commitments representing more than 15percent of Quindell's issued share capital.
($1 = 1.2930 Australian dollars)($1 = 0.6740 pounds) (Reporting by Jane Wardell in Sydney and Abhiram Nandakumar inBangalore; Editing by Eric Walsh and Anupama Dwivedi)