Markets

Chegg to Buy Online Thinkful for at Least $80 Million, Issues Sales Outlook

3:15PM ET 9/04/2019 MT Newswires
Chegg (CHGG), which operates direct-to-student learning platform, said on Wednesday it has agreed to acquire Thinkful, an online learning platform that offers professional courses directly to students across America.

Chegg said it expects to acquire Thinkful for $80 million in an all-cash deal.

There are also potential additional payments of up to $20 million, which may be paid in cash or restrictive stock units, Chegg added.

The acquisition is set to close early in Q4.

Thinkful offers online curricula, coupled with live experts, to give learners technology skills such as engineering, data science, data analytics and product design. 85% of Thinkful graduates get jobs in their field of study within six months of graduating their program, according to the statement.

Chegg also said it anticipates FY19 revenue to be in the range of $400 million to $404 million. Analysts surveyed by Capital IQ had projected $401 million.

The company expects no change to Q3 guidance as the acquisition will close in Q4.

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