Learning technology company Houghton Mifflin Harcourt (NASDAQ:HMHC) has completed its stock purchase agreement with private equity investment firm Veritas Capital.
Let’s get into everything traders need to know about that agreement below!
- The deal was completed thanks to a successful tender offer.
- This saw affiliates of Veritas Capital acquiring HMHC stock for $21 per share.
- That placed an implied equity value of $2.8 billion on the company.
- The tender offer saw 72,926,195 tendered, which is 57% of HMHC stock outstanding.
- This has the purchaser of the shares merging with Houghton Mifflin Harcourt, with the learning tech company surviving the combination.
- With that, it becomes a subsidiary of Veritas Capital, and HMHC stock no longer trades publicly.
- Houghton Mifflin Harcourt’s financial and legal advisors were Evercore and WilmerHale, respectively.
- Veritas Capital got legal advice from Milbank LLP.
- It’s also worth noting that Bank of America, JPMorgan Chase Bank, N.A., Deutsche Bank, Macquarie Capital, Citizens Bank, N.A., Goldman Sachs, Mizuho Bank, Ltd. and Stone Point Credit supplied Veritas Capital with funding for the deal.
Jack Lynch, President and CEO of Houghton Mifflin Harcourt, said the following about the deal to take the company private.
“This transaction provides additional financial flexibility and opportunities for investment and expansion and a highly knowledgeable and supportive partner in Veritas. Together, we look forward to building on HMH’s incredible legacy and ushering in a new era of digital learning for the benefit of our employees, customers and communities.”
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.