Today, Akorn Inc. and Hi-Tech Pharmacal Co. Inc. announced they had entered into a definitive agreement. The said agreement states that Akorn would acquire Hi-Tech for USD640 million in cash.

Hi-Tech is a specialty pharmaceutical company, manufacturing both generic and branded drugs. The company also manufactures over the counter (OTC) products and difficult to manufacture liquid and semi-solid dosage forms. Hi-Tech also specializes in manufacturing a range of suspensions and oral solutions.

Under the terms of the deal, Akorn would pay USD43.40 a share. This was represented through a premium of 23.5% after its closing price last August 26. Akorn had expected to receive between USD15 million and USD20 million in the acquisition's run-rate within 12 months. The combination of both companies had been expected to generate annual revenues of more than USD500 million.

"This is a transformative event for our company. The portfolio of Hi-Tech products is a great strategic fit to our currently marketed products as it diversifies our offering to our retail customers beyond ophthalmics to other niche dosage forms such as oral liquids, topical creams and ointments, nasal sprays and otics. In addition, we are excited about Hi-Tech's product pipeline which would further enhance growth opportunities for the combined platform," said Raj Rai, Akorn's CEO.