Abbott Laboratories Inc agreed to acquire India's Piramal Healthcare's healthcare solutions business for an up-front payment of $2.12 billion, in a deal it said would make it the largest pharmaceuticals company in India.

The deal also includes annual payments of $400 million for the next four years, beginning in 2011, Abbott said in a statement.

Piramal's Healthcare Solutions business will become part of the company's newly created, stand-alone Established Products Division.

The U.S. healthcare company said the combined sales force would be the largest in the industry in India, and forecast sales of more than $2.5 billion by 2020.

Abbott plans to fund the deal with cash on its balance sheet.

The transaction will not impact Abbott's earnings outlook for 2010, the company said.

Earlier this week, Piramal had denied media reports the founders were selling a stake in the drug maker, pushing its shares down more than 8 percent.

Indian television channels, citing sources, had said French drugmaker Sanofi-Aventis and Pfizer Inc were in negotiations to acquire the Mumbai-based company.

(Reporting by Brenton Cordeiro in Bangalore; Editing by Anshuman Daga)