Encyclopaedia Britannica Inc., the renowned publisher of the iconic encyclopedia and the Merriam-Webster dictionary, is in the process of seeking fresh capital to repay debts owed by its Swiss owner, Jacob E. Safra. Safra, the nephew of the late Swiss banker Edmond J. Safra, acquired Britannica in 1996 and currently serves as the company’s chairman.
The company has reportedly engaged Jefferies Financial Group Inc. to explore private lenders for a capital raise exceeding $450 million, which will incorporate an equity component. Bank of America Corp. and Deutsche Bank AG are also involved in facilitating the financing. The primary purpose of this capital infusion is to offset some of Safra’s existing debt, unrelated to the Britannica group.
While the discussions for the capital raise are still in the early stages, Britannica had previously announced its confidential filing for an initial public offering (IPO) in the U.S. This new development might potentially alter the timeline for the IPO, although the company remains dedicated to executing this plan.
Established over 250 years ago, Encyclopaedia Britannica is widely recognized as the oldest English-language general encyclopedia. Embracing technological evolution, the publisher has transitioned from traditional print encyclopedias to digital editions and online learning platforms. Its subsidiaries, including Britannica Education and Melingo AI, a language learning tool powered by artificial intelligence, cater to over 150 million students annually.
With a broad readership exceeding 7 billion page views each year, Britannica continues to be a prominent source of knowledge and learning. The company’s strategic shift towards digital platforms underscores its commitment to innovation and accessibility in the ever-evolving landscape of information dissemination.
