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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

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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

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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

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

Today's Transactions:
Pearson Purchases Five Percent Stake in Barnes & Noble’s Nook for $89.5M

The deal comes after Pearson and Bertelsmann announced they would merge their consumer books segments, in a move that would allow them to compete with Internet retailers like Amazon.com

Pearson plc (NYSE: PSO) has invested $89.5 million in Nook Media LLC, a subsidiary of Barnes & Noble Inc. (NYSE: BKS), which makes the Nook electronic reader device.

Pearson’s investment will give the learning company a five percent stake in Nook. Barnes & Noble will hold a 78.2 percent stake in the company after the transaction, and Microsoft will own 16.8 percent.

If certain conditions are met, Pearson will earn the option to purchase up to an additional five percent ownership in Nook. The investment should accelerate customer access to digital content by pairing Pearson’s specialty in online learning with Nook’s focus on online distribution. 

“We formed Nook Media to be a leader in the exploding market for digital content,” says William Lynch, chief executive of Barnes & Noble.

“With this investment we have entered into a commercial agreement with Nook Media that will allow our two companies to work closely together in order to create a more seamless and effective experience for students,” says Pearson’s chief executive, Will Ethridge.

In November, Pearson and Bertelsmann AG announced they would combine their book publishing companies, Penguin Group and Random House, to great the world’s largest consumer book publishing company. The merged company would be called Penguin Random House. The move was designed to compete with internet retailers, including Amazon.com Inc., (Nasdaq: AMZN), which makes the Kindle e-reader. Bertelsmann chief executive Thomas Rabe told reporters the merger would allow the company to invest more in digital operations and emerging markets.

Pearson is a London-based publishing company that has education, business information and consumer businesses.

For more on the education sector, see “With Dealmakers, School is Still in Session.” 

 

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