Generic drugmaker, Akorn Inc. (NASDAQ: AKRX) has agreed to acquire its smaller rival Hi-Tech Pharmacal Co. (NASDAQ: HITK) in deal valued at $640 million. The acquisition will allow Akorn to gain traction in the eye-care drug market by expanding its portfolio, which includes ointments and oral liquids. According to the terms of the deal, Akorn will pay $43.50 for each share held in Hi-Tech, which implies a premium of 23.5% to Hi-Tech’s closing stock price on Monday. The deal, which is all-cash, makes Akorn as the third largest U.S. generic ophthalmic player. The acquisition will considerably increase over-the-counter and prescribed drug sales, the company said in a statement.