BOSTON, MAY 10, 2021 – Learning technology leader Houghton Mifflin Harcourt ("HMH" or the "Company") (Nasdaq: HMHC) today completed its previously announced divestiture of its consumer publishing business, HMH Books & Media, to HarperCollins Publishers, a division of News Corp (Nasdaq: NWSA), a global, diversified media and information services company, for a cash purchase price of $349 million. Net proceeds to HMH were approximately $337 million after transaction fees.
The Books & Media divestiture advances HMH's Digital First, Connected strategy, accelerating the Company's growth momentum in digital sales, annual recurring revenue and free cash flow. This transaction deepens HMH's position as one of the largest and fastest growing companies in the edtech market, highly committed to building innovative solutions that deliver successful outcomes for students and teachers in all learning environments.
"This divestiture enables us to focus singularly on serving the large and growing K–12 education market and simultaneously extend our impact on student achievement," said Jack Lynch, President and CEO, HMH. "With a highly differentiated end-to-end technology platform underpinning our solutions, we are uniquely positioned to meet the need for purposeful digital learning and to enhance the value we provide to our customers—which include 90 percent of the nation's schools—and create for our shareholders. Importantly, the transaction also enables us to transform our capital structure and create flexibility, as a result of our ability to pay down a significant portion of our debt."
Lynch continued, "We wish our Books & Media colleagues the best and are grateful for the literary legacy that will always be central to HMH's story."
About Houghton Mifflin Harcourt
Houghton Mifflin Harcourt (Nasdaq: HMHC) is a learning technology company committed to delivering connected solutions that engage learners, empower educators and improve student outcomes. As a leading provider of K–12 core curriculum, supplemental and intervention solutions and professional learning services, HMH partners with educators and school districts to uncover solutions that unlock students' potential and extend teachers' capabilities. HMH serves more than 50 million students and 3 million educators in 150 countries. For more information, visit www.hmhco.com.