awk '/File #/{printf "%s %s is ",$1,$2;getline;print}' filename
/File #/{printf "%s %s is ",$1,$2;
If the record matches the pattern "File #", print (formated without a trailing new line: "%s %s is ") fields #1 and 2 (default field separator - space* - is assumed), so in our case the first match returns:
File #5 is
getline;print}
Read the next record (getline) and print it. So from:
File #5 : found
'/u01/testing.txt'
we get:
File #5 is '/u01/testing.txt'
sed
sed -n '/File #/{N;s/ : found\n/ is /p;}' filename
sed -n '/File #/{N;
The -n option: suppress automatic printing of pattern space.
If the current record/line matches the pattern "File #"...
N; - Read/append the next line of input into the pattern space,
so now, after the first match, our pattern space contains:
File #5 : found
'/u01/testing.txt'
s/ : found\n/ is /
In the pattern space: substitute the pattern ": found
" with " is ".
p;}
Print the current pattern space.
P.S. I modified my original sed version (a small fix).