As per the terms of the definitive merger agreement, shareholders of the publicly-listed Houghton Mifflin Harcourt will be offered $21 per share in cash by Veritas Capital for tendering their shares
Houghton Mifflin Harcourt is a publicly-listed education and learning technology company. (Credit: Marc Thele from Pixabay)
Houghton Mifflin Harcourt (HMH), a US-based education and learning technology company, has agreed to be acquired by certain affiliates of Veritas Capital in a deal worth around $2.8bn.
As per the terms of the deal, shareholders of the publicly-listed Houghton Mifflin Harcourt will be offered $21 per share in cash for tendering their shares. The merger agreement was approved unanimously by the company’s board of directors.
According to the learning technology firm, the decision to sign the agreement was driven by a strategic review process overseen by its board of directors.
The review process involved Houghton Mifflin Harcourt holding talks with various potential strategic and financial bidders, including Veritas Capital.
Houghton Mifflin Harcourt president and CEO Jack Lynch said: “Partnering with Veritas will provide HMH with the opportunity to accelerate our momentum and increase our impact on the four million teachers and 50 million students that we support each day.
“With accelerating billings growth, strong free cash flow and a transformed cost structure, we are at an important inflection point, and the time is right to move into the next phase of our long-term growth strategy alongside a partner that brings significant industry expertise.”
Listed on Nasdaq, Houghton Mifflin Harcourt is involved in providing connected solutions designed to engage learners, empower educators, and enhance student outcomes.
The company caters to educators and school districts with K–12 core curriculum, professional learning services, and supplemental and intervention solutions.
In December 2021, the company’s HMH Into Reading was approved as a curriculum option by the South Carolina Department of Education (SCDE) for the K-5 Palmetto Literacy Project (PLP) Schools.
Veritas Capital CEO and managing partner Ramzi Musallam said: “We recognize HMH as one of the storied brands in education and are excited to partner with the company to expand its market-leading digital solutions and deliver the most efficacious products to students and teachers.
“Over Veritas’ two decades of investing, education and technology have both become critical areas of focus across our portfolio. We look forward to bringing to bear our deep experience in K-12 education and proven track record to meaningfully invest in the Company to help drive better outcomes for students across the nation.”
The deal, which is subject to regulatory approvals and other customary conditions, is anticipated to close in Q2 2022.