SANTA CLARA, Calif., June 3, 2014 /PRNewswire/ -- Chegg, The Student Hub, today announced that it has agreed to acquire InstaEDU, a leading on-demand tutoring marketplace, for $30 million in cash. InstaEDU has quickly scaled into a platform that connects students with on-demand tutors in more than 2,500 subjects, ranging from high school and standardized test prep, all the way through advanced college concepts for as little as $0.40 per minute. The acquisition is subject to customary closing conditions. Chegg believes the acquisition will be accretive to earnings as early as 2015 and expects the acquisition to close by the end of June 2014.
"Students have been coming to Chegg for years to get homework help using our Chegg Study service when they've been stuck on a subject or need help mastering a concept. Now, they'll have the ability to connect any time, day or night, with an expert tutor who can provide personalized assistance on practically any subject," said Dan Rosensweig, Chairman and CEO of Chegg. "On-demand tutoring, anytime, anywhere, on any device is a very disruptive idea, and it's about time that high-quality tutoring was made affordable and accessible for all students through technology."
InstaEDU has grown rapidly by connecting students who need immediate assistance, as well as those seeking regular one-on-one sessions with a specific tutor, via the student's choice of video, voice, or text. All of InstaEDU's tutors have been individually screened via InstaEDU's proprietary qualification system, and receive feedback from their pupils via a public rating system. Selected from some of the top global universities, InstaEDU tutors earn extra money in their spare time while providing a valuable service that can benefit students anywhere, in any subject and at all income levels.
"We started this business because we recognized the opportunity to bring greater efficiency to a $60 billion global market through technology that makes one-on-one tutoring fundamentally more affordable and accessible for students anywhere," said Alison Johnston Rue, CEO of InstaEDU, who is staying on to lead Chegg's tutoring business. "Combining with Chegg instantly gives our on-demand tutoring platform access to Chegg's network of 13 million high school and college students, and together we can move quickly to reduce the cost of learning and improve grades and graduation rates across the board."
Chegg puts students first and is proud to have saved students and their families more than $450 million in 2013 alone. As the leading student-first connected learning platform, Chegg's Student Hub makes higher education more affordable and more accessible, all while improving student outcomes. 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.
This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, which include, without limitation those regarding the belief that the acquisition will be accretive to earnings as early as 2015; the belief that Chegg's reach will enable InstaEDU to connect many more tutors to students; the belief that Chegg and InstaEDU can together move quickly to and reduce the cost of learning and improve grades and graduation rates; the belief that on-demand tutoring, anytime, anywhere, on any device is a very disruptive idea; and the expected closing date of the acquisition. These statements are not guarantees of future performance, but are based on management's expectations as of the date of this press release and assumptions that are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements. Important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements include the following: the risk that Chegg will be unable to successfully integrate InstaEDU and its employees and achieve expected synergies and the risk that consumer demand for online tutoring does not grow as significantly as we anticipate or that we will be unable to capitalize on any such growth. These and other important risk factors are described more fully in documents filed with the Securities and Exchange Commission, including Chegg's final prospectus from its initial public offering, and could cause actual developments to vary from expectations. All information provided in this release is as of the date hereof and Chegg undertakes no duty to update this information except as required by law.
SOURCE Chegg Inc.