UPDATE 3-Sonova to buy Advanced Bionics Corp for $489 mln

* Total transaction costs 510 mln Sfr at current rates * Sonova sees deal adding to earnings 2nd year after close

* Deal cements Sonova position as global No. 1

* Shares up 1.2 pct

(Adds conf. call comments, further details, updated shares) ZURICH, Nov 9 (Reuters) - Sonova (SOON.VX) said on Monday it is to buy U.S. cochlear implant maker Advanced Bionics for $489 million in cash, reinforcing its position as global leader in hearing aid production.

The Swiss company said, including transaction costs, it would pay a total of 510 million Swiss francs ($505.5 million) at current exchange rates, and that the deal would be financed by 40 million francs in cash and an underwritten senior credit facility of 470 million francs.

"It's a good price. It's not a low price but it's not an overpriced asset," said Sonova Chief Executive Valentin Chapero in a conference call, adding the acquisition gave his company entry into a high-growth market with substantial upside.

The buy means Sonova, which currently has a 24 percent share of the hearing healthcare market, can put more distance between itself and its largest rivals Siemens (SIEGn.DE) and William Demant (WDH.CO), with 22 percent each.

Analysts welcomed the addition to the product portfolio but asked whether the price was right for Advanced, spun off from U.S medical devices company Boston Scientific (BSX.N) in 2007.

"The price of the acquisition at 4.2 times sales is on the high side but the strategic fit is welcome. This means Sonova can broaden its product range and become a provider of the most varied hearing solutions," said ZKB analysts in a note.