Bausch + Lomb, the global eye health company, has signed a definitive agreement to buy ISTA Pharmaceuticals for $9.10 per share in cash, or an approximate total of $500 million. The transaction was unanimously approved by the boards of directors of both companies and is expected to close in the second quarter of 2012.

The acquisition accelerates Bausch + Lomb’s's strategy to strengthen its pipeline and marketed products and capabilities. The transaction is expected to drive growth and high performance for the long term.

The combination adds ISTA's portfolio of industry-proven non-steroidal, anti-inflammatory, allergy, glaucoma and spreading agents to Bausch + Lomb's complementary portfolio of existing Rx ophthalmology and OTC eye health products. The companies also have complementary development pipelines. ISTA's pipeline includes candidates in various stages of development to treat various ocular conditions including inflammation and pain, while Bausch + Lomb's pipeline of pharmaceutical innovations include a new class of ocular anti-inflammatory agents and a promising approach to reducing intra-ocular pressure in patients with open-angle glaucoma or ocular hypertension.

"Because Bausch + Lomb already manufactures nearly all of ISTA's current U.S. products, our companies have known each other well for many years. We share a strong overlapping customer base in the U.S.,”  said Brent Saunders, president and CEO, Bausch + Lomb. “With this combination, we will significantly enhance our pharmaceutical pipeline, nearly doubling the number of mid- to late-stage innovations.”

The transaction is subject to regulatory approval and other customary closing conditions, including the approval of ISTA's shareholders. The companies will continue to operate independently until completion of the transaction.