Houghton Mifflin to sell college division to Cengage for $750M
Cengage, previously known as Thomson Learning, said Monday's cash transaction would help broaden its education products, including textbooks and study guides.
Boston-based Houghton Mifflin and Stamford, Conn.-based Cengage also said they planned a long-term agreement to cooperate in expanding distribution of Cengage's book titles into the U.S. market for high school advanced placement textbooks.
The cash transaction between Houghton Mifflin and Cengage is expected to close in the first half of next year, subject to conditions including regulatory approval.
Tony Lucki, chairman, president and chief executive of Houghton Mifflin, said the privately held company's college division "has been an important contributor to Houghton Mifflin for many years, but moving forward we will focus our efforts on our K12, trade and reference businesses."
The sale will help Houghton Mifflin concentrate on its integration with Orlando, Fla.-based educational publisher Harcourt Education, which Houghton Mifflin is buying from Reed Elsevier PLC as part of a $4 billion deal announced in July.
Cengage was known as Thomson Learning before former parent Thomson Corp. in July completed the sale of most of its Thomson Learning assets to a group of funds advised by private-equity firm Apax Partners and Ontario-based pension plan OMERS Capital Partners.
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