Canadian medical diagnostic services provider CML HealthCare Inc said it would be bought by LifeLabs Medical Laboratory Services in a deal valued at C$1.22 billion ($1.16 billion), including debt.

LifeLabs, owned by Ontario Municipal Employees Retirement System (OMERS), will pay C$10.75 per share, representing a 49 percent premium to CML's closing price on Monday.

The offer price includes the assumption of $255 million of debt, CML said in a statement on Tuesday.

(Reporting by Krithika Krishnamurthy in Bangalore; Editing by Don Sebastian)