Windtree Therapeutics, Inc. ( WINT ) shares are trading higher Tuesday after the company announced it will acquire Titan Environmental Services.

What To Know: Windtree expects the deal to generate $12 million in revenue over the next 12 months and establish a new subsidiary, Windtree Environmental Services.

The transaction will be funded through preferred shares and secured debt financing, and includes an $8 million breakup fee if the agreement falls through. Windtree noted the U.S. waste collection market is valued at $85 billion and sees potential for future acquisitions to drive further revenue and EBITDA growth.

Titan's current management team will remain in place, and the deal is expected to close in the third quarter. Windtree also said it will continue exploring partnership or sale opportunities for its pharmaceutical assets to reduce costs.

"This transaction strategically aligns with our vision of diversifying our business model by increasing revenue and providing significant growth potential for the Company," said Jed Latkin, CEO of Windtree.

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WINT Price Action: At the time of writing, Windtree shares are moving 57.7% higher at 88 cents, according to data from Benzinga Pro.

Image: This illustration was generated using artificial intelligence via Midjourney.