Educational publishers McGraw-Hill Education and Cengage Learning are planning an all-stock merger, McGraw-Hill said on Wednesday.
The merged company will be named McGraw Hill and will hold about $3.16 billion in annual revenue, both companies had earlier told The Wall Street Journal, which first reported the deal.
If the deal stands through, the new company would become the second-largest provider of college textbooks and other higher-education materials in the United States, the report said.
Cengage Learning Chief Executive Officer Michael Hansen will head the new firm, McGraw-Hill confirmed.
The merged entity, which could be valued at about $5 billion, would help both U.S.-based educational publishers to compete better as the rise of digital books and course materials pressures their businesses.