I have a text file with the following format. The first line is the \"KEY\" and the second line is the \"VALUE\".
KEY 4048:1736 string 3 KEY 0:1772 string 1
awk:
awk 'NR%2{printf "%s ",$0;next;}1' yourFile
note, there is an empty line at the end of output.
sed:
sed 'N;s/\n/ /' yourFile