NEW YORK (AP) - Meredith Corp. says it is buying Time Inc. for about $1.8 billion in a deal that joins two giant magazine companies.
Meredith will pay $18.50 per share in cash and tack on about $1 billion in debt.
Meredith brings with it a magazine portfolio that includes Better Homes & Gardens, Family Circle, allrecipes and Shape, while Time Inc. owns properties including Time, Sports Illustrated, People, Fortune and Entertainment Weekly.
The companies said the deal was unanimously approved by their boards of directors and will close early next year.
Combined, the companies posted $4.8 billion in revenue last year. Meredith expects it will save up to $500 million in costs in the first two years of operation.
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