Educational publisher Houghton Mifflin Harcourt Co said on Tuesday it had agreed to be bought by private equity firm Veritas Capital for about $2.8 billion in cash.
Houghton Mifflin was one of the pandemic winners, benefiting from a surge in demand for remote learning that sent its shares up nearly five-fold in 2021.
Veritas Capital will pay $21 for each Houghton share, a premium of 15% to its last close on Friday.
The deal is expected to close in the second quarter, with Houghton Mifflin Chief Executive Officer Jack Lynch continuing to lead the company.
Shares of Houghton Mifflin jumped about 12% before the bell.
Source: Reuters.com