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.
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. For more information,
visit www.chegg.com.
ABOUT COGEON
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.
i
http://www.educationworld.com/a_news/there-reason-us-students-struggle-math
ii
https://www.americanprogress.org/issues/education/reports/2016/09/28/144000/remedial-education/
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SOURCE Chegg, Inc.