RTTNews | Mar 29, 2021 10:22AM EDT

10:21 Monday, March 29, 2021 (RTTNews.com) - Shares of Houghton Mifflin Harcourt Company (HMHC) are rising more than 19% Monday morning following its decision to sell the company's books & media segment, HMH Books & Media, to HarperCollins Publishers, a unit of News Corp. (NWSA) for $349 million, cash.

On closing the transaction, the company plans to focus on its K-12 education by growing digital sales, annual recurring revenue and free cash flow, while paying down debt.

"The divestiture of the HMH Books & Media business allows us to deepen our focus on K-12 education, while also providing our talented consumer publishing colleagues and authors with infrastructure and support to fuel continued growth, champion new stories and continue this legacy," said Jack Lynch, President and CEO, HMH.

The transaction is expected to close in the second quarter of 2021.

HMHC touched a new high of $7.59 this morning, before sliding to trade at $7.13 currently.

Read the original article on RTTNews ( https://www.rttnews.com/3180936/stock-alert-houghton-mifflin-harcourt-at-new-high-after-deciding-to-sell-its-books-media-segment.aspx)

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