01:04 PM EDT, 03/12/2024 (MT Newswires) -- Scholastic (SCHL) said Tuesday it has signed an agreement to acquire 100% of the economic interest in privately held 9 Story Media Group for $186 million.

Under the terms of the deal, Scholastic will also receive an undisclosed minority voting stake in the company once the deal closes during Scholastic's fiscal Q1. The transaction, which has been approved by the boards of both companies as well as the shareholders of 9 Story, is subject to the customary closing conditions, including a satisfactory opinion by the Minister of Canadian Heritage, according to Scholastic.

The company said it plans to initially finance the transaction using available cash and its revolving credit facility, adding it expects to maintain its regular dividend and stock buyback program.

Scholastic said 9 Story is a privately held media company producing children's content appearing on multiple outlets, including PBS public television, Amazon.com's ( AMZN ) Prime Video, and Apple TV+. The acquisition is expected to boost top-line and earnings growth, according to Scholastic.

Scholastic shares were 3% lower in midday trading on Tuesday.

Price: 38.23, Change: -1.33, Percent Change: -3.36