Educational publishers McGraw-Hill Education Inc and Cengage Learning Holdings II Inc are planning an all-stock merger, the Wall Street Journal reported on Wednesday.

The merged company will be titled McGraw Hill and will hold about $3.16 billion in annual revenue, both companies told the newspaper on Tuesday, adding that Cengage Learning Chief Executive Officer Michael Hansen will head the new firm.

If the deal stands through, the new company would become the second-largest provider of college textbooks and other higher-education materials in the United States, the newspaper said.

The new entity, which could be valued at about $5 billion, would help both U.S.-based educational publishers to compete better as the rise of digital books and course materials pressures their businesses.

McGraw-Hill Education and Cengage did not immediately respond to Reuters requests for comments.