Californians who follow business news might be interested in learning about a merger that was recently announced between McGraw-Hill Education and Cengage Learning Holdings II, two large educational publishers. The companies announced that they will merge together in an all-stock deal to create the second-largest publisher of educational materials in the U.S.

Current holders of the two companies will each keep 50% of the new company. The merged company will be named McGraw Hill, and it is projected to have $3.16 billion in annual revenue. It is valued at $5 billion. The companies stated that the merger will allow them to save $300 million in costs over the next three years. They plan to use that money to expand the digital presence of McGraw Hill.

The current CEO of Cengage will assume the role of CEO of the new company. McGraw-Hill Education’s existing CEO plans to leave once the merger is complete. If the merger receives approval, McGraw Hill will be able to compete with British publisher Pearson. Shares of Pearson were down after news of the proposed merger broke.

Companies that are interested in mergers and acquisitions might want to consult with experienced corporate lawyers. Mergers and acquisitions are highly complex, making it important for companies to understand all of the regulatory requirements. Corporate lawyers may assist their clients during the research and due diligence process. When a merger target is identified, the lawyers may assist with the negotiations and work to secure agreements that will protect their clients’ interests. If completed correctly, a merger or acquisition can allow companies to expand rapidly.