updated 3/24/2011 9:50:14 AM ET 2011-03-24T13:50:14

Drugstore operator Walgreen Co. says it will spend about $429 million to buy online retailer drugstore.com in a deal that gives it access to 3 million online customers.

The largest U.S. drugstore operator will give drugstore.com shareholders $3.80 in cash for each share of stock in a deal it expects to close by the end of June.

The acquisition will add about 60,000 products to Walgreen's online offerings, and the company says it will significantly speed up its online strategy.

The per-share deal price represents a premium of 113 percent over the $1.79 closing price of drugstore.com's stock on Wednesday.

Walgreen says it will fund the deal with existing cash. Drugstore.com shareholders still must approve the acquisition, but the Bellevue, Wash., company's board has already unanimously approved it.

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