U.S. education groups McGraw-Hill, Cengage plan all-stock merger - WSJ

Cengage Learning Holdings II

01/05/2019 06:14

May 1 (Reuters) - Educational publishers McGraw-Hill
Education Inc and Cengage Learning Holdings II Inc  CNGO.PK  are
planning an all-stock merger, the Wall Street Journal reported
on Wednesday.
    The merged company will be titled McGraw Hill and will hold
about $3.16 billion in annual revenue, both companies told the
newspaper on Tuesday, adding that Cengage Learning Chief
Executive Officer Michael Hansen will head the new firm. 
    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 newspaper
said https://www.wsj.com/articles/mcgraw-hill-cengage-plan-all-stock-merger-11556683590.
 
    The new 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.
    McGraw-Hill Education and Cengage did not immediately
respond to Reuters requests for comments.   
    

 (Reporting by Maria Ponnezhath, Editing by Sherry
Jacob-Phillips)
 ((Maria.Ponnezhath@thomsonreuters.com; +91 8067497625;))