Stock Groups

Veritas Capital to Acquire Houghton Mifflin Harcourt For $2.8 Billion -Breaking

by Mike Robinson

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Sam Boughedda

Investing.com —  Houghton Mifflin Veritas Capital will acquire Harcourt Co (NASDAQ) in a $2.8 billion deal.

Veritas, a private investment company, will purchase the company for $21 per share. This is a 36% premium over the unaffected share prices as of January 13, 2022.

Houghton stock shares recovered after the initial drop during the pandemic. The company was able to benefit from the increase in remote learning and more employees. Houghton shares rose 15% on Tuesday after the acquisition news, and have gained 241% during the last twelve months.

According to the press release, Veritas stated that the decision to accept Veritas’ offer was a result of a strategic review conducted by the Board of Directors. They had talks with several buyers during the process.

Jack Lynch (President and CEO of HMH) stated, “With strong free cash flow, accelerating billings growth and transformed costs structure, we have reached an important point and it is time to transition into the next stage of our long term growth strategy together with a partner that brings substantial industry expertise.”

Lynch, along with current managers, will still be the chief executive officer of the company. It is anticipated that the transaction will close in 2022’s second quarter.

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