Houghton Mifflin Harcourt Efficiently Completes Sale to Veritas Capital

Main EdTech Firm Effectively-Positioned to Bustle up Digital Transformation and Red meat up Value for All Stakeholders


Houghton Mifflin Harcourt Firm (“HMH,” or the “Firm”), a learning abilities company, launched that it has accomplished its previously launched sale to obvious affiliates of Veritas Capital (“Veritas”), a leading private equity funding firm with a focal level on abilities companies. The transaction, accomplished via a winning comfortable offer of $21 per portion, implied an equity value for the Firm of roughly $2.8 billion.

“As of late marks a thrilling recent chapter for HMH. As we proceed to lift the energy of learning to millions of kids and educators, we are now in an awesome stronger impart to attain on the subsequent phase of our long-time-frame philosophize diagram,” said Jack Lynch, President and Chief Govt Officer, HMH. “This transaction affords further financial flexibility and alternatives for funding and expansion and a highly a qualified and supportive partner in Veritas. I are looking out to thank our motive-driven crew for his or her distinctive focal level whereas we comprise worked to finalize the transaction. Collectively, we put up for constructing on HMH’s incredible legacy and ushering in a recent period of digital learning for the earnings of our workers, customers and communities.”

“We’re contented to welcome HMH to the Veritas portfolio and partner with the HMH crew to develop the Firm’s leading digital choices that enhance lecturers and drive higher outcomes for varsity students,” said Ramzi Musallam, Chief Govt Officer and Managing Accomplice of Veritas. “This acquisition underscores Veritas’ commitment to investing in businesses that leverage abilities to create a certain impact, and we glance mountainous opportunity for innovation and impact in the education abilities market. We put up for working with Jack and the management crew and bringing to endure our abilities in K-12 education as HMH executes on its confirmed diagram.”

As of the expiration of the cozy offer, a total of 72,926,195 shares were validly tendered into and no longer effectively withdrawn from the offer, representing roughly 57% of HMH’s prominent shares and nice the minimal comfortable condition of the offer. Such shares were approved for cost in accordance to the phrases of the offer. The purchaser of such shares will be merged with and into HMH, with HMH persevering with as the surviving company of such merger as a unconditionally-owned subsidiary of Veritas. HMH’s inventory will give up trading on the NASDAQ below the ticker symbol HMHC effective these days.

Evercore served as financial consultant, and WilmerHale served as authorized counsel to HMH. Milbank LLP acted as authorized consultant to Veritas. Bank of The US, JPMorgan Coast Bank, N.A., Deutsche Bank, Macquarie Capital, Voters Bank, N.A., Goldman Sachs, Mizuho Bank, Ltd. and Stone Level Credit offered financing for the transaction.

About HMH

Houghton Mifflin Harcourt is a learning abilities company committed to delivering connected solutions that salvage newcomers, empower educators and enhance scholar outcomes. As a leading provider of K–12 core curriculum, supplemental and intervention solutions, and skilled learning services and products, HMH companions with educators and college districts to bellow solutions that free up college students’ attainable and lengthen lecturers’ capabilities. HMH serves higher than 50 million college students and four million educators in 150 worldwide locations. For extra files, visit www.hmhco.com.

About Veritas Capital

Veritas is a longstanding abilities investor with a focal level on companies running on the intersection of abilities and govt. The firm invests in companies that offer extreme products, tool, and services and products, essentially abilities and abilities-enabled solutions, to govt and industrial customers worldwide. Veritas seeks to manufacture value by strategically reworking the companies whereby it invests via natural and inorganic potential.

Leveraging abilities to create a certain impact all the diagram in which via vitally important areas, similar to healthcare, education, and national security, is core to Veritas. We’re proud stewards of national belongings, making improvements to the quality of healthcare whereas cutting again cost, advancing our educational machine, and keeping our nation and allies. For extra files, visit www.veritascapital.com.

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