TORONTO (Reuters) - Davis + Henderson Corp (>> Davis + Henderson Corp), a Canadian financial services provider, said on Tuesday it has agreed to acquire U.S. rival Harland Financial Solutions for about $1.2 billion in cash from Harland Clarke Holdings Corp .

The deal will broaden D+H's offerings for online and mobile banking, branch automation and commercial lending, said the Toronto-based company which tailors technology to the needs of credit unions, community banks and other financial institutions.

HFS has about 5,400 U.S. bank and credit union clients.

The deal will significantly boost D+H's exposure to the U.S. market. It is expected to close next month, subject to regulatory approvals.

(Reporting by Euan Rocha; Editing by Richard Chang)