No Go: McGraw-Hill and Cengage Terminate Merger Agreement; Simon Allen Appointed McGraw-Hill CEO

From a McGraw Hill:

McGraw-Hill and Cengage today announced that they have mutually agreed to terminate their proposed merger of equals, which had been announced in May 2019. The decision was unanimously approved by the Boards of Directors of McGraw-Hill and Cengage. The Termination Agreement foresees no payment of a break fee on either side.

In a statement, Simon Allen, CEO of McGraw-Hill said: “Because the required divestitures would have made the merger uneconomical, McGraw-Hill and Cengage have decided to terminate the merger agreement. This will allow each of us to focus on our respective stand-alone strategies for the benefit of our owners, employees, customers and other stakeholders. I want to express my deep appreciation for the efforts and incredible commitment demonstrated by McGraw-Hill’s employees over the past year and particularly in recent weeks as they have worked tirelessly to help educators make the transition to online learning.”

More News From McGraw-Hill: Simon Allen Appointed CEO

From Cengage:

“Cengage entered into the merger agreement as a leader in helping students access affordable course materials and digital courseware,” said Michael E. Hansen, CEO, Cengage. “Although we are disappointed that we were unable to finalize the merger, the opportunity ahead remains significant.

Read the Complete News Release

Also From Gale:

“Although we believed the merger could have helped libraries reach more learners, the future for Gale has never been stronger. As distance learning becomes a new reality, Gale remains committed to providing libraries, educators and students with digital resources and educational technology to support their online learning needs. Our customers are our top priority and we will continue to deliver the high-quality content and service they have come to expect. We continue to operate as part of the Cengage portfolio and our customers will not see any disruption in the services we provide to them.”
–Paul Gazzolo, Senior Vice President & General Manager, Gale

See Also: Cengage/McGraw-Hill Merger Called Off (by Nicole Allen, SPARC)

See Also: APLU Applauds Termination of Proposed McGraw-Hill and Cengage Merger

Background

U.S. Public Interest Research Group (U.S. PIRG) and Coalition of Student Groups Send Letters to U.S. Dept. of Justice Opposing Cengage-McGraw Hill Merge (July 29, 2019)

 “McGraw-Hill Education, Cengage Plan All-Stock Merger: WSJ” (May 1, 2019)

Filed under: Gale, Jobs, Libraries, News