May 14 (Reuters) - Private equity firm KKR will

take UK's IQGeo Group private in a 316 million pounds

($396.04 million) deal, the companies said on Tuesday, sending

shares in the geospatial software provider soaring 16%.

Geologist Bidco Limited, wholly owned by funds advised by

KKR, will pay 480 pence in cash for each IQGeo ( IQGLF ) share. The offer

price represents a premium of 19% to the stock's last close.

Shares in IQGeo ( IQGLF ) hit a record high of 474 pence after the

announcement, last trading at 470 pence as of 1043 GMT.

The deal will help KKR to tap into the geospatial software

market, which provides critical software and services to

telecoms and utility firms ranging from network design to

operation.

"The proposed acquisition will provide IQGeo ( IQGLF ) with the

ownership structure and investment required to unlock its full

potential," Paul Taylor, chair of IQGeo ( IQGLF ), said in a statement.

IQGeo ( IQGLF ), which provides software solutions to

telecommunication, fibre and utility firms, will recommend the

deal to its shareholders, the company said.

($1 = 0.7980 pounds)