Houghton Mifflin Harcourt announced that it agreed to acquire Scholastic’s education technology and services business for $575 million in cash. The edtech business generated $249 million in revenues and $40 million in operational income in the 2014 fiscal year.
Through the acquisition HMH aims to get into a leading position in the intervention market as well as strengthen footprint in education technology, early learning and education services.
For Scholastic the sale will help the company to focus on its core businesses. The publisher plans to invest the proceeds of the sale, estimated at $360 – $370 million, into its Children’s Book Publishing and Distribution, Classroom and Supplemental Materials Publishing and International business segments.
The management team of Scholastic’s edtech business is expected to join HMH along with its 800 employees. The transaction is expected to close in the second quarter of this year.
- Houghton Mifflin Harcourt to Acquire Scholastic’s Educational Technology and Services Business for $575 Million | BusinessWire
- Scholastic To Sell Educational Technology Business To Houghton Mifflin Harcourt For $575 Million To Focus On Global Core Children’s Books And Supplemental Education Businesses | PR Newswire