McGraw-Hill and Cengage to merge
Education publishers McGraw-Hill and Cengage have agreed to merge.
In an announcement, the publishers said both companies’ boards of directors had signed off on ‘a definitive agreement to combine in an all-stock merger on equal terms’.
The combined company will be named McGraw Hill and will be led by current Cengage CEO Michael Hansen. The greater leadership team and other details will be finalised prior to the deal’s closure. Publishers Weekly reports that the deal is expected to be finalised in early 2020.
Hansen said the new company will offer ‘a broad range of best-in-class content—delivered through digital platforms at an affordable price’. ‘Together, we will usher in an era in which all students can afford the quality learning materials needed to succeed—regardless of their socioeconomic status or the institution they attend,’ said Hansen. ‘Additionally, the combined company will have robust financial strength to invest in next-generation products, technology and services that create superior experiences and value for millions of students.’
McGraw-Hill president and CEO Nana Banerjee, who will continue to lead the publisher through the transition, said combining the two companies will ‘enable us to continue innovating’. ‘In this way we can continue to empower students and educators around the world with a wide choice of affordable, engaging course materials and advanced digital platforms to help them succeed throughout a lifetime of learning,’ said Banerjee.
The Bookseller reports that the merger will create the sixth largest publisher in the world, with a combined 2018 revenue of US$3.22 billion (A$4.6bn), with US$1.6 billion (A$2.29bn) for McGraw-Hill and US$1.62 billion (A$2.32bn) for Cengage.
Books+Publishing sought comment from the publishers about how the merger will affect local operations but did not hear back before deadline.
Category: Local news