U.S. education groups McGraw-Hill, Cengage plan all-stock merger (updated)

Cengage Learning Holdings II

01/05/2019 11:11

(Changes sourcing)
    May 1 (Reuters) - Educational publishers McGraw-Hill
Education Inc and Cengage Learning Holdings II Inc  CNGO.PK  are
planning an all-stock merger, McGraw-Hill said on Wednesday.
    The merged company will be named McGraw Hill and will hold
about $3.16 billion in annual revenue, both companies had
earlier told the Wall Street Journal, which first reported the
deal.
    If the deal stands through, the new company would become the
second-largest provider of college textbooks and other
higher-education materials in the United States, the report
said. 
    Cengage Learning Chief Executive Officer Michael Hansen will
head the new firm, McGraw-Hill confirmed.
    The merged entity, which could be valued at about $5
billion, would help both U.S.-based educational publishers to
compete better as the rise of digital books and course materials
pressures their businesses.

 (Reporting by Maria Ponnezhath, additional reporting by Akshay
Balan; Editing by Sherry Jacob-Phillips and James Emmanuel)
 ((Maria.Ponnezhath@thomsonreuters.com; +91 8067497625;))