Ophthalmic drug manufacturer Akorn Inc said that it would be acquiring its competitor Hi-Tech Pharmacal Co Inc. The deal, valued at USD 640 million, would enable Akorn to widen its pharmaceutical portfolio of eye drugs to include ointments and oral liquids. Akorn would buy Hi-Tech's shares at a premium of 23.5% from its recent closing price, putting the price tag at USD 43.50 per share. Akorn also added that it would be paying for the acquisition in cash.

Once the deal is completed, Akorn would become the third-largest company in the generic ophthalmic drug market in the US. This would also boost its retail presence in the prescription and OTC drug segments. Hi-Tech would be adding cough and cold products, nasal sprays and topical ointments to Akorn' existing eye care product line.

Akorn said it would expect the acquisition to increase its adjusted earnings per share. The drug manufacturer also said that the purchase would lead to corporate savings of USD 15 million to USD 20 million a year.