Reader’s Digest Association being sold for $1.6 billion

Reader’s Digest Association Inc. has said that they are being acquired by an investor group for $1.6 billion. The group publishes one of the most widely read U.S. magazines and they are now being acquired by an investor group led by buyout firm Ripplewood Holdings.

They are going to pay around $17 per share for Reader’s Digest.

Ripplewood said in a statement that the price being paid for Reader’s Digest Association is a premium of 23 percent over the average closing price of Reader’s Digest shares in the 45 trading days leading up to Wednesday.

The group publishes Reader’s Digest magazine, which is published around the world in around 21 languages and has a monthly circulation of about 18 million.

As per market estimates, this magazine has a readership of more than 80 million people worldwide. The deal is expected to close by the first quarter of next year.