McGraw-Hill and Cengage to merge

Education publishers McGraw-Hill and Cengage must combine in a merger of equities. The transaction was unanimously approved by the Boards of Directors of both companies and should be completed by the beginning of 2020, subject to regulatory approval.

A statement said the merger "will bring together two top-tier education companies that will deliver significant benefits to students, educators, professionals and institutions around the world."

The combined company should be named McGraw Hill, with details to be finalized before closing, and will be led by Cengage c.e.o. Michael Hansen President of McGraw-Hill and c.e.o. Nana Banerjee, who would have played a key role in facilitating the merger agreement and negotiating the material terms of the deal, will continue to lead McGraw-Hill during the transition. The combined company leadership team should be comprised of members of McGraw-Hill and Cengage and will be announced prior to the closing of the deal.

Based on the financial statements of Cengage and McGraw-Hill for the 12 months ended March 31, 2019, the combined company would have pro forma cash receipts of $ 3,157 million and cash EBITDA of less than $ 889 million, including the pro forma impact of $ 300 million. cost synergies, the companies said.

Hansen said: "The new company will offer a wide range of first-class content – delivered through digital platforms at an affordable price. Together, we will usher in an era where all students can afford the quality learning materials they need to succeed – regardless of their socioeconomic status or the institution they attend. In addition, the combined company will have financial strength to invest in next-generation products, technology and services that create superior experiences and value for millions of students. "

Banerjee, of McGraw-Hill, said: "For more than a century, our goal has been to unlock each learner's potential and to improve lives through education. Combining our two companies and our complementary offerings will allow us to continue innovating. That way we can continue to empower students and educators from around the world with a wide variety of accessible and engaging course materials as well as advanced digital platforms to help them succeed throughout a lifetime of learning. "

A statement from both parties described Cengage and McGraw-Hill as two organizations with complementary missions and said, "Together, the new company will be even better positioned to create new local impact products that use leading educational technology to enhance the experiences and learning outcomes. "

The combined company will have more than 44,000 titles. The companies said that PreK-12th educators will benefit from combining McGraw-Hill's complete portfolio of literacy, math, science and humanities curricula and best adaptive technologies with Cengage Advanced Placement offerings. Both parties "remain committed to affordable, high-quality solutions for US college students," the two said. This includes a commitment to continue and expand your Inclusive and Unlimited Access programs with the opportunity to combine content and extend program offerings after the merger is complete.