Eye care company Bausch & Lomb (BOL) will acquire Ista Pharmaceuticals Inc for $500 million, according to a joint statement made by the two companies on Monday.

BOL will pay $9.10 a share in cash for Ista under the definitive agreement, which will be closed in the second quarter of 2012, the joint statement said.

Ista is an excellent strategic fit with Bausch & Lomb's rapidly growing pharmaceutical business, and this combination represents an important step in Bausch & Lomb's commitment to becoming the best global eye health company, said Brent Saunders, BOL's president and chief executive officer.

Because Bausch & Lomb already manufactures nearly all of Ista's current U.S. products, our companies have known each other well for many years,” he added.

Ista, the maker of eye medications, had earlier rejected the hostile bid put forward by Valeant Pharmaceuticals International Inc for $327 million. BOL intends to finance the acquisition through cash and a $350-million loan.

Along with the rest of our Board of Directors, I am pleased that the tremendous assets Ista's people have created with our products and pipeline have been recognized by Bausch & Lomb, a global leader in eye health, and that we were able to finalize a transaction after a thorough process that delivers shareholders an important return on their investment in Ista, said Vicente Anido, Jr., president and chief executive officer of Ista Pharmaceuticals.

“Ista's portfolio of prescription eye and allergy products is a natural extension of Bausch & Lomb's pharmaceutical business focus. Together, we create an impressive platform to commercialize new eye care and allergy products already under development, he added.