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(Corrects headline and paragraph 1 to say Element Materials is a UK-based firm, not Dutch.)
April 19 (Reuters) - British materials testing company Exova Group said on Wednesday UK-based Element Materials Technology would buy it in a deal valued at 620.3 million pounds ($795.3 million).
Element said it would pay Exova shareholders 240 pence per share in cash, representing a 10.7 percent premium to the stock's closing price on March 24 before Exova entered talks with potential buyers.
The offer was in line with Exova's closing price on Tuesday, and based on that the deal was worth 607.1 million pounds, according to Reuters calculations.
Exova shareholders will also receive a final dividend of 2.35 pence per share for 2016, Element said.
"The combined UK headquartered group will benefit from deep pools of technical talent, very significant testing capacity and a strong network of facilities to support our customers' global supply chains," Element CEO Charles Noall said in a statement.
Exova, whose laboratories test the safety and performance of products used in industries ranging from aerospace to pharmaceuticals, revealed in March that it had received proposals for a possible cash offer from Element Materials Technology.
The Edinburgh-based company also said private equity fund PAI Partners, and Jacobs Holding AG, a Swiss investment firm, had also made similar proposals.
Goldman Sachs and Investec advised Exova on the acquisition.
Exova shares were down 0.8 percent at 238 pence in early trading on Wednesday. ($1 = 0.7800 pounds) (Reporting By Justin George Varghese; Editing by Amrutha Gayathri)