- News Corp (NASDAQ:NWS) has acquired the Books & Media segment of Houghton Mifflin Harcourt (NASDAQ:HMHC) for $349M in cash.
- The business will be operated by HarperCollins Publishers, a News Corp subsidiary.
- In 2020, HMH Books & Media had strong growth with net sales of $191.7M and Adjusted EBITDA of $26.6M.
- HarperCollins expects to realize immediate cost savings, accumulating to more than $20M annually within two years, including manufacturing, distribution and other cost efficiencies and anticipates revenue synergies by leveraging its global scale and further expanding licensing opportunities.
- The acquisition is expected to close in 4Q21.
- HMHC +2.8% premarket.