June 6 (Reuters) - SoftBank-backed doValue

will acquire Italian bad loan manager Gardant for 230 million

euros ($250.59 million) in an all-cash deal, the company said on

Thursday.

doValue, Italy's biggest bad loan company, will issue new

shares resulting in a 20% stake in the combined group for

Gardant shareholders, the company said in a statement.

The deal also includes a financing package of 500 million

euros and a rights issue of 150 million euros to existing and

new shareholders, it said.

The acquisition is expected to be cash accretive to

doValue's earnings per share in the medium term, and Elliott

Management will have two representatives on doValue's board of

directors, subject to shareholder approval, the company said.

U.S. fund Elliott Management is the owner of Gardant.

In March, Softbank Group and Elliott Management had entered

into a non-binding agreement to combine Gardant and doValue in a

cash-and-shares deal.

With the merger, doValue would secure a stream of

revenue thanks to Gardant's recent deal to buy BPER Banca's

non-performing loan business and provide collection

services to the Italian bank for 10 years.

($1 = 0.9179 euros)

(Reporting by Gnaneshwar Rajan in Bengaluru; Editing by

Nivedita Bhattacharjee and Janane Venkatraman

)