Chegg Agrees to Acquire a Leading Online Tutoring Network, InstaEDU

Continues to Democratize Education through Affordable Access to High Quality Tutors On-Demand, In Any Subject

Santa Clara, Calif. – June 3, 2014 – 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.”

More information about the acquisition can be found at http://www.chegg.com or by emailing press@chegg.com. To explore the InstaEDU platform and sign up for a free trial visit http://www.instaedu.com.

About Chegg

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

Forward-Looking Statements

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.

 

Chegg Acquires Student Deals Platform Campus Special

Expands Mobile Advertising Platform Adding Daily Deals and Food Services for College Students

Santa Clara, Calif. – April 17, 2014 – Chegg, The Student Hub, today announced that it has acquired student deal platform Campus Special for $17 million in cash and stock.  Campus Special will be rebranded Chegg Campus Deals. Combined with its leading student-first connected learning platform, Chegg’s new Campus Deals platform expands the number of ways students can engage with Chegg to save time, save money and get smarter.

Students across more than 500 college campuses are already using Chegg Campus Deals to order and pay for food and to discover offers from local and national merchants.  The service derives revenue from every food order placed through the app, in addition to the local and national advertising sold both within the app and in its widely-distributed coupon books.

“This is a great fit strategically, because combining Chegg’s brand and reach among college students with our new mobile deals platform creates new opportunities for Chegg and our brand partners to engage with students every day and deliver value. We are excited to expand quickly and add new colleges, advertisers and students to the platform,” said Dan Rosensweig, Chegg’s CEO. “Culturally, we gain a strong team, a great on-campus presence and a shared commitment to putting students first.”

Campus Deals has differentiated itself through an award-winning internship program that has already recruited, hired and, next week in Chicago, will train 750 paid interns for this coming summer. Campus Deals interns are responsible for and have been successful in driving the company’s local advertising business.  Leveraging this internship program, Chegg believes it can scale Campus Deals to more than a thousand schools within 18 months.

Chegg will address investor questions about the transaction during its upcoming quarterly earnings call on May 1, 2014.  Details about how to participate in Chegg’s quarterly call can be found here.

About Chegg

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.

Forward Looking Statements

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 the new Campus Deals will expand the number of ways students can engage with Chegg to save time, save money and get smarter; Chegg’s belief that Campus Deals will create new opportunities for Chegg and its brand partners to engage with students every day and deliver value; Chegg’s expectation that it will expand Campus Deals quickly and add new colleges, advertisers and students to the platform; and Chegg’s belief that it can scale Campus Deals to more than a thousand schools within 18 months.  Statements regarding future events are based on the parties’ current expectations and are necessarily subject to associated risks related to, among other things, the potential impact on the business of Campus Special due to the acquisition, general economic conditions, competition, and integration risks, among others.  Therefore, actual results 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 Annual Report on Form 10-K for the fiscal year ended December 31, 2013 and the company’s other SEC filings. You can obtain copies of the company’s SEC filings on the SEC’s website at www.sec.gov or on the Investor Relations section of the company’s website at investor.chegg.com.  The forward-looking statements included herein are made only as of the date hereof, and neither party undertakes an obligation to revise or update any forward-looking statements for any reason.