GateHouse Media Parent to Buy Gannett for $1.4 Billion

The country’s two largest newspaper chains agreed to combine their businesses in a roughly $1.4 billion deal, further consolidating an industry reeling from strong economic headwinds.

New Media Investment Group Inc., the parent of GateHouse Media, is buying Gannett Co. in a cash-and-stock transaction, the companies said Monday. New Media will pay $6.25 in cash and 0.5427 New Media share for a total of $12.06 for each Gannett share.