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The first installment of our new predictive index shows that dealmakers expect overall M&A to increase, with health care outperforming the overall market READ MORE 

SLIDESHOW

ACG New York Women of Leadership - Entrepreneur Series
Barbara Bradley Baekgaard, founder of Vera Bradley (Nasdaq: VRA), is the latest in a series of entrepreneurs highlighted at ACG New York Women of Leadership events. Photo credit: Robert Blumenfeld

Watercooler

GTCR, Hormel, the Riverside Co-CEOs and Others Win M&A Mid-Market Awards
Amid a slow and challenging year for dealmaking, the winners of Mergers & Acquisitions’ 7th Annual M&A Mid-Market Awards outpaced the competition to grow, innovate and lead the middle market

Roundtable

Financial Services Companies Heat Up M&A Market
Speakers from Flexpoint Ford, Genstar Capital, Baird Capital, Madison Capital Funding and Katten Muchin Rosenman discuss the various factors playing a role in M&A activity within the financial services space

Expert's Corner

Pursuing Pharma Manufacturing
The fragmented pharmaceutical manufacturing industry provides plenty of opportunities for private equity investors, says JLL Partners founder Paul Levy

Random House and Penguin Group Join Forces
to Combat Amazon

Expect the combined company to invest more in emerging markets, where book sales are growing faster than in developed markets

In a move designed to combat the growth of e-books and compete with Internet retailers including Amazon.com Inc. (Nasdaq: AMZN), Bertelsmann AG and Pearson plc (NYSE: PSO) are combining their book publishing companies, Random House and Penguin Group, to create the world's largest consumer book publishing company. The merger, to be called Penguin Random House, will be based in New York, with annual revenues of about $3.8 billion.

Bertelsmann chief executive Thomas Rabe (pictured) told reporters that the merger will allow the combined company to invest more in digital operations and emerging markets, where book sales are growing faster than in developed markets, such as the U.S. and Western Europe.

Financial terms of the deal weren't disclosed, but sources peg the deal value in a wide range, somewhere between $2 million and $3 million. Rupert Murdoch's News Corp. (Nasdaq: NWSA) had reportedly bid $1.6 billion for Penguin.

No cash is exchanging hands in the transaction. Gutersloh, Germany-based Bertelsmann will own 53 percent, and London-based Pearson will own 47 percent of Penguin Random House. The deal is expected to close in the second half of 2013, if it receives regulatory approval. Random House's Markus Dohle will serve as chief executive, and Penguin's John Makinson will be chairman.

Close regulatory scrutiny is expected. The European Commission is particularly concerned about deals that result in the loss of what it calls "cultural diversity."


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