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
You can use awk like this to combine ever 2 pair of lines:
awk '{ if (NR%2 != 0) line=$0; else {printf("%s %s\n", line, $0); line="";} } \ END {if (length(line)) print line;}' flle