Houghton Mifflin agrees to buyout

HOUGHTON MIFFLIN AGREES TO BUYOUT
[SOURCE: Associated Press]
Houghton Mifflin Co. on Wednesday agreed to a nearly $1.8-billion buyout that would pair a venerable name in textbook publishing with Riverdeep Inc., a smaller firm whose strength is educational software. By joining Houghton's paper-and-ink business with Riverdeep's software, the newly formed venture hopes to better position itself against larger rivals Pearson, McGraw-Hill Cos. and Harcourt Education. Barry O'Callaghan, Riverdeep's chief executive, said the deal sought to "capitalize on the convergence of print and digital education platforms" and help Riverdeep draw strength from Houghton's larger sales force. Riverdeep's popular educational software brands include Reader Rabbit, Carmen Sandiego and Cluefinders. The deal would create a company with more than $1.4 billion in revenue — most of it from Houghton, which has about 3,500 employees. Riverdeep has 300 workers. Houghton, the fourth-largest U.S. textbook publisher, traces its origins to 1832. It was home to early American authors such as Ralph Waldo Emerson and Henry David Thoreau, as well as J.R.R. Tolkien.
http://www.latimes.com/business/printedition/la-fi-houghton30nov30,1,463...

* Sold: Houghton Mifflin
http://www.forbes.com/markets/bonds/2006/11/29/houghton-mifflin-rivergro...