HarperCollins publisher HarperCollins, which is the largest publisher of children’s books in the US, is going to acquire Penguin Books Group for $800m, according to people familiar with the matter.
The agreement is expected to close by the end of the year.
HarperCollins is the fourth-largest publisher of books in US bookstores, behind J. K. Rowling’s JK Rowling Publishing, and the second-largest after Random House.
Penguin will be based in New York.
The deal is expected, in part, to drive down the price of Penguin books, the people said.
HarperCollins has been selling children’s titles in the UK since the 1980s and is one of the biggest publishers in the world.
It has a market share of about 5% of the UK market, compared with around 2% for Penguin.
It is the biggest of the four major UK publishers, with its imprints in Britain and the US.
A spokesman for Penguin declined to comment.