Bertelsmann SE & Co. KGaA will become the sole owner of Penguin Random House LLC after agreeing to acquire Pearson PLC's remaining 25% stake in the book publisher for about $675 million.

The deal pegs Penguin Random House's enterprise value at $3.67 billion, according to a news release.

The transaction is expected to be completed in the first half of 2020, subject to regulatory approvals. Bertelsmann-owned Verlagsgruppe Random House GmbH will become part of Penguin Random House after the deal's completion.

Pearson will use a portion of the transaction's proceeds to fund a £350 million share buyback scheme that begins early next year, with the remainder for general corporate purposes.

German media company Bertelsmann in 2017 increased its stake in Penguin Random House to 75%. At the time, U.K. education company Pearson promised to keep its remaining stake for at least 18 months.

Pearson also announced that John Fallon is retiring as CEO in 2020 after the appointment of his successor. Company Chair Sidney Taurel will lead the selection process.

Fallon became Pearson's chief executive in 2013.