M&A · Tech · Books: Publishing or Publishing & Printing
Veritas Capital Fund VII, L.P. to acquire Houghton Mifflin Harcourt Co
Announced Feb 22, 2022 · Closed Apr 7, 2022
Deal value$2.80BEV $2.70B
Premium36.0%To unaffected price
EV / Adj. EBITDA9.8x2.5x EV / Revenue
ConsiderationAll cash$21.00 per share
Transaction
- Acquirer
- Veritas Capital Fund VII, L.P.
- Target
- Houghton Mifflin Harcourt Co
- Buyer type
- Private equity
- Offer price per share
- $21.00
- Enterprise value
- $2.70B
- Status
- Closed Apr 7, 2022
Deal protections
- Break fee (target pays)
- $65.0M · 2.3%
- Reverse fee (buyer pays)
- $130M · 4.6%
- Go-shop
- No-shop
- Financing
- Committed · BofA Securities, JPMorgan, Deutsche Bank, Macquarie
Advisors
- To the acquirer
- Not disclosed
- To the target
- Evercore
- Evercore fee
- $32.0M
Sector context · Tech
- Comparable deals
- 57 in the prior 24 months
- Premium
- 36.0% vs. 30.8% sector median
- EV / Adj. EBITDA
- 9.8x vs. 17.8x sector median
- Break fee
- 2.3% vs. 3.0% sector median
Timeline
- AnnouncedFeb 22, 2022
- Tender offerMar 7, 2022
- ClosedApr 7, 2022
Valuation · fairness opinions
Discounted cash flow$17.17$22.56
Trading comparables$15.07$23.12
Trading comparables$15.12$27.88
Trading comparables$14.31$28.64
Trading comparables$14.88$19.14
Offer $21.00
Implied value per Houghton Mifflin Harcourt Co share by analysis, from Evercore · DCF discount rate 11.5%–13.5%.