With this transaction, HMH adds market-leading intervention curriculum and services to its industry-leading Pre-K-12 portfolio. The addition of the EdTech group also builds on HMH’s strategy to expand in other key growth areas, including educational technology, early learning, and education services.
“The closing of this acquisition is an exciting milestone for HMH, the EdTech business, and the broader education community,” stated Linda K. Zecher, HMH’s President and Chief Executive Officer. “Our combined content portfolio, sales and services capabilities, and robust digital platforms yield a comprehensive offering that will better serve teachers, students, parents and lifelong learners. We look forward to working with this talented team to further drive our vision of fueling a learning transformation powered by technology.”
Eric Shuman, HMH’s Chief Financial Officer, commented, “We’re excited to have completed this transaction, which deepens our strategic positioning in key growth areas. We believe that the new revenue streams and cost synergies we expect to realize from this transaction will enhance our overall financial profile. We will continue to take a prudent approach to capital allocation as we look to drive long-term growth and stockholder value.”
With the close of this transaction, the EdTech group’s approximate 800 employees have become part of HMH, including the division’s President Margery Mayer, who joins the Company as EVP, HMH Intervention Solutions, reporting directly to CEO Linda Zecher.
“The entire EdTech team is delighted to join an organization that brings both passion and innovation to learning,” added Margery Mayer, EVP, HMH Intervention Solutions. “As part of HMH, we gain a unique opportunity to serve a broader customer base and to develop new, cutting-edge products and services designed to close achievement gaps and accelerate the learning transformation.”
HMH also closed today on the $800 million senior secured term loan facility with a six-year maturity, which replaces its existing $180 million term loan.
About Houghton Mifflin Harcourt
Houghton Mifflin Harcourt (NASDAQ:HMHC) is a global learning company dedicated to changing people’s lives by fostering passionate, curious learners. As a leading provider of pre-K–12 education content, services, and cutting-edge technology solutions across a variety of media, HMH enables learning in a changing landscape. HMH is uniquely positioned to create engaging and effective educational content and experiences from early childhood to beyond the classroom. HMH serves more than 50 million students in over 150 countries worldwide, while its award-winning children's books, novels, non-fiction, and reference titles are enjoyed by readers throughout the world. For more information, visit www.hmhco.com.
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Contacts
Investor Relations
Rima Hyder
Vice President, Investor Relations
617-351-3309
rima.hyder@hmhco.com
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Bianca Olson
SVP, Corporate Affairs
617-351-3841
bianca.olson@hmhco.com
Forward Looking Statements
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Important factors that could cause our results to vary from expectations include, but are not limited to: the risk that the acquisition and new term loan disrupt current plans and operations; the ability to achieve the anticipated benefits and synergies of the acquisition, which may be affected by, among other things, competition, the ability of the acquired business to grow and manage growth profitably, maintain relationships with suppliers and obtain adequate supply of products and retain its key employees; costs related to the acquisition; changes in applicable laws or regulations; our inability to successfully integrate the business; changes in state and local education funding and/or related programs, legislation and procurement processes; adverse or worsening economic trends or the continuation of current economic conditions; changes in consumer demand for, and acceptance of, our products; changes in product mix, format and timing of delivery; changes in competitive factors; offerings by technology companies that compete with our products; industry cycles and trends; conditions and/or changes in the publishing industry; changes or the loss of our key third-party print vendors; restrictions under agreements governing our outstanding indebtedness; changes in laws or regulations governing our business and operations; changes or failures in the information technology systems we use; demographic trends; uncertainty surrounding our ability to enforce our intellectual property rights; inability to retain management or hire employees; impact of potential impairment of goodwill and other intangibles in a challenging economy; decline or volatility of our stock price regardless of our operating performance; and other factors discussed in the “Risk Factors” section of our most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other news releases we issue and filings we make with the SEC. In light of these risks, uncertainties and assumptions, the forward-looking events described herein may not occur.
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