Chegg Acquires AI-Enhanced Writing Platform

Chegg (CHGG), a student-first connected learning platform, said late Wednesday that it has acquired WriteLab, Inc., an AI-enhanced writing platform that teaches students grammar, sentence structure, writing style, and offers instant feedback to help students revise, edit, and improve their written work.

The company acquired WriteLab for $15 million, in an all cash transaction. An additional payment of $5 million may be paid to key employees over the next three years, in cash or stock at Chegg’s sole discretion, contingent upon the continued employment of such key employees.

As a result of this acquisition, Chegg does not expect any material effect on operations,or on its previously issued guidance.

The company expects Q2 revenue of $69 million – $71 million, versus the Capital IQ consensus estimate of $70.2 million. For the full year 2018, revenue is expected to be $300 million – $305 million, versus the Street view of $303.9 million.

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