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Akorn to acquire Hi-Tech Pharmacal

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Akorn Inc. and Hi-Tech Pharmacal Co. Inc. announced that they have entered into a definitive agreement whereby Akorn will acquire Hi-Tech for $640 million in cash, according to a press release.

Under the terms of the agreement, Akorn will pay $43.50 per share, which represents a 23.5% premium over the closing price on Aug. 26. The combined company is expected to have annual revenues in excess of $500 million, and the transaction is expected to increase Akorn’s non-GAAP adjusted earnings per share immediately upon closing, the release said.

Akorn expects to achieve between $15 million and $20 million in annual run-rate synergies within 12 months of close, according to the release.

The acquisition will be subject to customary conditions, including termination of the waiting period under the provisions of the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. Pending the satisfaction of such customary conditions, Akorn anticipates closing the transaction in the first quarter of 2014, the release said.