, a generic drug company with operations in Charlotte and Alabama, is being acquired by Endo Pharmaceuticals (Nasdaq: ENDP) in a deal worth $1.2 billion in cash.

Endo is based in Chadds Ford, Pa.

The combined company will offer drugs treating pain, urology and other ailments.

Qualitest is the sixth largest generic drug maker in the U.S. with 175 products. Its headquarters are located in Alabama.

The combined company will have some 3,000 employees and annual revenues of $2 billion.

Endo said it plans to continue operations in Charlotte and Alabama.

Endo will finance the buyout with $500 million in cash, $300 million in credit, and up to $400 million in financing. Endo has its own drug manufacturing facility in Westbury, N.Y.

“The acquisition of Qualitest accelerates our stated strategy of building a diversified health care company, better able to respond to the changing economics that drive the U.S. health care environment,” said Endo President and CEO David Holveck in a statement.

Endo also said that 40 percent of Qualitest’s revenue come from pain products, making it a “natural extension” of Endo’s position.

The deal will add about $400 million to Endo’s revenue, the company says, and about 40 cents per share in net income. The company reaffirmed its 2010 outlook for adjusted net income per share between $3.30 and $3.35 on revenue between $1.63 billion and $1.68 billion.

(The AP contributed to this report.)

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