The transaction, which is subject to regulatory approval and other customary closing conditions, including the approval of ISTA’s shareholders, is expected to close in the second quarter of 2012.
The companies will continue to operate independently until completion of the transaction.
Goldman, Sachs & Co served as financial advisor to Bausch + Lomb in the transaction and Cleary Gottlieb Steen & Hamilton served as legal counsel.
Greenhill & Co served as financial advisor to ISTA and Stradling Yocca Carlson & Rauth and WilmerHale served as legal advisors.
Bausch + Lomb president and chief executive officer Brent Saunders said with the combination, the company will significantly enhance its pharmaceutical pipeline, nearly doubling the number of mid- to late-stage innovations.