SANTA CLARA, Calif., Oct. 18, 2017 /PRNewswire/ -- Chegg, Inc. (NYSE: CHGG), the Smarter Way to Student, today announced that it has acquired German-based Cogeon GmbH, a provider of adaptive math technology and developer of the math app, Math 42 (www.math-42.com). With this acquisition, Chegg will be able to provide self-guided and individualized math solutions to more students, deepening their reach in to the high school market.
"Math is a major pain point for students today," said Nathan Schultz, Chief Learning Officer of Chegg, Inc. "The technology we have acquired enhances our ability to tackle math deficiencies with tools that are self-guided, personalized, and on demand, better preparing students for success both in and out of the classroom. And the Cogeon team, led by a family of world-renowned mathematicians, will work with us to develop best-in-class products to improve how students learn complex math concepts."
Math deficiency is a large-scale issue that is pervasive in both education and workforce preparedness in the United States, as 64% of high school students are not prepared for college-level mathi, and over 40% of freshmen students must take at least one remedial math course.ii With this acquisition, Chegg will leverage Cogeon's unique A.I.-driven math technology to enhance current capabilities inside Chegg Study and expects to launch an integrated new product, Chegg Math, in the second half of 2018.
"We started our company with a desire to help the world solve and understand math," said Thomas Nitsche, Co-Founder of Cogeon. "Cogeon and Chegg share like-minded missions to bring students innovative, responsive tools that help improve their learning experience. By joining Chegg, we're able to deliver an important educational technology to millions of students to help them better understand their course material and give them needed skills to compete in the workforce."
Chegg has acquired Cogeon for EUR 12.5 million (or approximately USD 15.0 million) in an all-cash transaction. There are potential additional payments of up to EUR 7.5 million, payable in cash or stock in the discretion of Chegg, and up to EUR 3.2 million in restricted stock units over the next three years that remain subject to contingencies. As a result of this acquisition, Chegg does not expect any material effect on operations for 2017.
Chegg puts students first. As the leading student-first connected learning platform, Chegg strives to improve the overall return on investment in education by helping students learn more in less time and at a lower cost. Chegg is a publicly-held company based in Santa Clara, California and trades on the NYSE under the symbol CHGG. For more information, visit www.chegg.com.
Founded in 2013, Berlin-based Cogeon GmbH develops a scalable core technology for automated, individualized and adaptive mathematical learning applications. Cogeon's platform is a proven math learning system which optimizes individual math learning pathways for learning and solving math problems and exercises. Cogeon's primary application–Math 42–is a trusted math learning app offering hierarchical step-by-step exercises, concept walk-throughs, and personalized assessment, built upon an artificially intelligent learning engine. Built by a family of expert chess players and exceptional mathematicians with deep technical expertise, Cogeon's math technology is rooted in a unique combination of mathematical, technological and didactical frameworks.
SAFE HARBOR STATEMENT
This press release may be deemed to contain forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including Chegg's belief that it, through its acquisition of Cogeon, will have the ability to reach more students, including high school students, will increase the value of what is provided to subscribers, increase Chegg's addressable market, Chegg's expectation that it will provide self-guided and personalized math solutions to more students and deepen its reach in to the high school market, Chegg's belief it and the Cogeon team will be able to develop best-in-class products, Chegg's expectation to launch an integrated new product, Chegg Math, in the second half of 2018, Chegg's contingent payments and equity issuances to Cogeon over the next three years and Chegg's expectation that the acquisition will not have a material effect on operations for 2017. Statements regarding future events are based on management's current expectations and are necessarily subject to associated risks related to, among other things, the potential impact on the business of Cogeon due to the acquisition, general economic conditions, competition, and integration risks, among others. Therefore, actual results, performance or achievements may differ materially and adversely from those expressed in any forward-looking statements. For information regarding other related risks, see the "Risk Factors" section of Chegg's Quarterly Report on Form 10-Q for the quarter ended June 30, 2017 filed with the Securities and Exchange Commission ("SEC") on July 31, 2017 and Chegg's other SEC filings. You can obtain copies of Chegg's SEC filings on the SEC's website at www.sec.gov or at Chegg's Investor Relations website at investor.chegg.com. The forward-looking statements included herein are made only as of the date hereof, and Chegg undertakes no duty to revise or update any forward-looking statements for any reason except as required by law.
SOURCE Chegg, Inc.