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  • Chegg Acquires StudyBlue

    July 2, 2018

    PRESS RELEASE – Chegg, Inc. (NYSE: CHGG), a Smarter Way to Student, announced today that it has acquired StudyBlue, Inc. (“StudyBlue”). With this acquisition, Chegg expands its content offering, to provide greater value to students, and can utilize StudyBlue’s insights from 10 years of data on student learning.

    StudyBlue’s vast library of content allows students to find an explanation or study support, as well as create their own materials including flashcards and collections of concepts. StudyBlue collects learners’ data and progression, assisting them to specifically target their knowledge gaps.

    “StudyBlue adds a substantial number of subject categories to our existing offering, with half a billion pieces of content,” said Nathan Schultz, Chief Learning Officer of Chegg, Inc. “By combining StudyBlue’s assets with Chegg’s, we believe we will significantly expand the number of students to whom we are relevant as well as provide a better experience across the OKboard.”

    Research has shown students creating and using their own flash cards and study tools to be among the strongest forms of active and retrieval learning. This is one of the most effective foundations of learning. “37% of students used online flashcards in 2017, an increase from 29% the prior year.i Of these, one in two said they were their primary study source.”ii

    StudyBlue will become a Chegg Service. Users may continue to use the StudyBlue platform without any interruption. Chegg expects to remove the existing paywall in time for the 2018 back to school period to increase the availability of Chegg Services to more students.

    “We started our company nearly 10 years ago with a mission to help every student successfully learn anything,” said Chris Klündt, Co-Founder of StudyBlue. “Combining with Chegg will help us rapidly accelerate our roadmap, leverage our data, and offer our tools more affordably, enabling us to reach, and help, even more students.”

    Chegg acquired StudyBlue for approximately $20.8 million, in an all cash transaction.

    As a result of this acquisition, Chegg does not expect any material impact on Q2-18 or full year 2018 guidance issued on April 26, 2018. Chegg anticipates a restructuring charge of approximately $1.0 million in the next year, for facility consolidation as a result of the acquisition.

    About Chegg
    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.

    Click here for the full press release. Additional coverage: SeekingAlpha.

     



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