Barcelona - La Liga strugglers Espanyol have taken Lithuanian international goalkeeper Giedrius Arlauskis on loan from Watford for the remainer of the season, both clubs confirmed on Thursday.
Espanyol, who were recently taken over by the Chinese Rastar Group, have a right to make the deal permanent at the end of the season.
Arlauskis made just two appearances for the Premier League club since joining from Steaua Bucharest last June, where he was coached by Espanyol boss Constantin Galca.
Espanyol also announced they have secured 100 percent of striker Felipe Caicedo's economic rights on Thursday, raising the Ecuadorian international's buyout clause to 35 million euros ($38 million, 26.5 million) in the process.
Caicedo, who has scored eight goals in 23 games this season, had been linked with a move to Everton and Newcastle United.
Espanyol sit 13th in La Liga, just four points above the relegation zone, and visit Real Madrid on Sunday.