Wiley to acquire Blackwell Publishing.

John Wiley & Sons (Hoboken, NJ) has entered into a definitive agreement to acquire the outstanding shares of Blackwell Publishing (Holdings) Ltd. (Oxford, UK/Malden, MA), one of the world's largest academic and professional publishers, for 572 million [pounds sterling] ($1.12 billion), or about 2.7 times Blackwell's approximate 2005 revenue of 210 [pounds sterling]. Wiley said the deal implemented through a U.K. Scheme of Arrangement, will be financed through a combination of cash and debt. Wiley has received irrevocable commitments from the principal shareholders of Blackwell to sell their shares to Wiley. The deal is expected to close in early 2007.

Blackwe11 is the publisher of approximately 825 journals, about evenly divided between science, technical and medical (STM) titles and the social sciences and humanities, as well as about 600 books a year and a backlist of 6000 titles. The company is the world's leading society publisher, partnering with 665 academic, medical and professional societies. Journal titles are produced in the Arts, Business, Economics, Finance & Accounting, Construction, Engineering & Technology, Humanities, Law & Criminology, Mathematics, Medical, Nursing, Dentistry, Science, Veterinary Medicine, Social & Behavioral Sciences and Agriculture sectors. Blackwell Publishing was founded in 2001 through the merger of Blackwell Publishers (founded in 1926) and Blackwell Science (founded in 1939).

Blackwell has operations in Europe, Asia, the U.S. and Australia and has about 1000 employees. The company's 2005 revenue of approximately $380 million was about the same as Wiley's global STM business. Blackwell Ltd., the book library service and retailing business, is a separate entity and is not part of the transaction.

Wiley President/CEO William Pesce said the merger of the two companies "is a rare opportunity with highly-favorable, long-term strategic implications. The combined business will publish approximately 1250 scholarly peer-reviewed journals and an extensive collection of books with global appeal." Blackwell CEO Rene Olivieri said the acquisition creates "a global publishing business with deep strength in every major academic and professional field."

Wiley was established in 1807 and produces STM journals, encyclopedias, books and online products and services, as well as professional and consumer books and subscription services, and educational materials for undergraduate and graduate students and lifelong learners. Products are published in such fields as the medical sciences, chemistry, statistics, mathematics, electrical and electronics engineering, computers, psychology, architecture, accounting, education, business, languages and hospitality and culinary arts. Through Wiley InderScience, the company provides academic and corporate customers with online access to a range of STM content through licensing agreements.