BOSTON, May 10, 2021 /PRNewswire/ -- Learning
technology leader Houghton Mifflin
Harcourt ("HMH" or the "Company") (Nasdaq: HMHC) today
completed its previously announced divestiture of its consumer
publishing business, HMH Books & Media, to HarperCollins
Publishers, a division of News Corp (Nasdaq: NWSA), a global,
diversified media and information services company, for a cash
purchase price of $349 million. Net
proceeds to HMH were approximately $337
million after transaction fees.
The Books & Media divestiture advances HMH's Digital First,
Connected strategy, accelerating the Company's growth momentum in
digital sales, annual recurring revenue and free cash flow. This
transaction deepens HMH's position as one of the largest and
fastest growing companies in the edtech market, highly committed to
building innovative solutions that deliver successful outcomes for
students and teachers in all learning environments.
"This divestiture enables us to focus singularly on serving the
large and growing K–12 education market and simultaneously
extend our impact on student achievement," said Jack Lynch, President and CEO, HMH. "With a
highly differentiated end-to-end technology platform underpinning
our solutions, we are uniquely positioned to meet the need for
purposeful digital learning and to enhance the value we provide to
our customers—which include 90 percent of the nation's schools—and
create for our shareholders. Importantly, the transaction also
enables us to transform our capital structure and create
flexibility, as a result of our ability to pay down a significant
portion of our debt."
Lynch continued, "We wish our Books & Media colleagues the
best and are grateful for the literary legacy that will always be
central to HMH's story."
About Houghton Mifflin Harcourt
Houghton Mifflin
Harcourt (Nasdaq: HMHC) is a learning technology company
committed to delivering connected solutions that engage learners,
empower educators and improve student outcomes. As a leading
provider of K–12 core curriculum, supplemental and intervention
solutions and professional learning services, HMH partners with
educators and school districts to uncover solutions that unlock
students' potential and extend teachers' capabilities. HMH serves
more than 50 million students and 3 million educators in 150
countries. For more information, visit www.hmhco.com.
Follow HMH on Twitter, Facebook,
YouTube and Instagram.
Contacts
Investor Relations
investor.relations@hmhco.com
Media Relations
Bianca
Olson
SVP, Corporate Affairs
(617) 351-3841
bianca.olson@hmhco.com
Forward-Looking Statements
The statements contained herein include forward-looking
statements, which involve risks and uncertainties. These
forward-looking statements can be identified by the use of
forward-looking terminology, including the terms "believes,"
"estimates," "projects," "anticipates," "expects," "could,"
"intends," "may," "will," "should," "forecast," "intend," "plan,"
"potential," "project," "target" or, in each case, their negative,
or other variations or comparable terminology. Forward-looking
statements include all statements that are not statements of
historical facts. They include statements regarding our intentions,
beliefs or current expectations concerning, among other things: the
potential benefits from the divestiture of HMH Books & Media,
including the expected impact of our Digital First, Connected
strategy; growth momentum in digital sales, annual recurring
revenue, and free cash flow; and the use of the net proceeds from
the transaction to pay down debt. We derive many of our
forward-looking statements from our operating budgets and
forecasts, which are based upon many detailed assumptions. We
caution that it is very difficult to predict the impact of known
factors, and, of course, it is impossible for us to anticipate all
factors that could affect our actual results. All forward-looking
statements are based upon information available to us on the date
of this report.
By their nature, forward-looking statements involve risks and
uncertainties because they relate to events and depend on
circumstances that may or may not occur in the future. We caution
you that forward-looking statements are not guarantees of future
performance and that actual results may differ materially from
those made in or suggested by the forward-looking statements
contained herein. In addition, even if actual results are
consistent with the forward-looking statements contained herein,
those results or developments may not be indicative of results or
developments in subsequent periods.
Important factors that could cause actual results to vary from
expectations include, but are not limited to: the risk that
disruption resulting from the completed divestiture of HMH Books
& Media may adversely affect the Company's businesses and
business relationships, including with employees and suppliers; the
duration and severity of the COVID-19 pandemic and its impact on
the federal, state and local economies and on K-12 schools; the
rate and state of technological change; state requirements related
to digital instructional materials; our ability to execute on our
Digital First, Connected growth strategy; increases in our
operating costs; management and personnel changes; timing, higher
costs and unintended consequences of our operational efficiency and
cost-reduction initiatives; and other factors discussed in the
"Risk Factors" sections of our Annual Report on Form 10-K for the
fiscal year ended December 31, 2020
and our Quarterly Report on Form 10-Q for the quarter ended
March 31, 2021. In light of these
risks, uncertainties and assumptions, the forward-looking events
described herein may not occur.
We undertake no obligation, and do not expect, to publicly
update or publicly revise any forward-looking statement, whether as
a result of new information, future events or otherwise, except as
required by law. All subsequent written and oral forward-looking
statements attributable to us or to persons acting on our behalf
are expressly qualified in their entirety by the cautionary
statements contained herein.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/houghton-mifflin-harcourt-completes-divestiture-of-hmh-books--media-for-349-million-301287564.html
SOURCE Houghton Mifflin Harcourt