Pharma giant Pfizer announced Monday it will buy cancer drug maker Array BioPharma for $11.4 billion. 

Pfizer said it will pay $48 per share in the deal, which requires final approval from the boards of directors for both companies. The price is 62 percent above Array's Friday closing price, representing a market capitalization of $10.64 billion. 

Array is a commercial-stage biopharmaceutical company which develops and commercializes targeted small molecule medicines to treat cancer and other diseases. Nearly a year ago, the Food and Drug Administration approved two Array drugs for patients with one of the deadliest types of skin cancer metastatic melanoma. 

"[The deal] reinforces our commitment to deploy our capital to bring breakthroughs that change patients' lives," Pfizer CEO Albert Bourla said in a statement. 

"The proposed acquisition ... sets the stage to create a potentially industry-leading franchise for colorectal cancer alongside Pfizer's existing expertise in breast and prostate cancers." 

Array also is testing a combo therapy for colorectal cancer patients. 

Pfizer said it expects to complete the deal by the second half of this year.