(AP) Springer will buy digital publishing company Pearson Publishers for $1.3 billion, a move that will boost its revenue by about $300 million in 2019.
The acquisition was first reported by The Wall Street Journal ( WSJ ) on Thursday.
Pearson Publishing will continue to operate as a publisher of books, but the company will no longer publish print books, which will be merged with the Pearson online business, said CEO Tim Hildebrand.
Peerson Publishers, which publishes more than 100 titles across a variety of genres, including romance, children’s and memoirs, will continue in the U.S., the company said in a statement.
Hildebrand declined to say how much Peerson will pay for the publishing unit, which he started in 1997.
The deal was completed in July.
Peisner’s parent company, The Washington Post Company, is based in Washington, D.C.
The deal includes $8,836 million in cash and an option to purchase another $836.4 million in Pearson shares, which could raise the value of the combined company to about $872.6 million.
Hildegard, 56, said Peisner has “one of the highest profit margins in the industry” and the company plans to “focus on our books and digital content, as we continue to grow our online business.”
He said the acquisition was driven by the fact that “we’ve been in the publishing business for 10 years.”
The company has more than 200 million members worldwide, with about half of them in the United States.
It reported $842 million in revenue in 2019, up from $818 million in 2018.