Chegg To Acquire Language Learning Platform Busuu For $436M

Chegg Inc CHGG has agreed to acquire Busuu, a language learning platform, for $436 million (€385 million) in an all-cash transaction. Busuu, an education platform designed for learning a new language, provides courses in 12 different languages to over 500,000 paying subscribers.

• Busuu, founded in 2008 by Bernhard Niesner and Adrian Hilti, has offices in London, U.K., and Madrid, Spain. It has over 20,000 new registrations daily.
• Chegg expects Busuu's full-year 2021 revenue to be approximately $45 million with year-over-year growth of greater than 20%.
• Chegg anticipates closing the acquisition early in the first quarter of 2022.
• "It will allow us to drive further into international markets, as well as accelerate Busuu's growth in the US market," said CEO Dan Rosensweig.
• Chegg held $2.6 billion in cash and equivalents as of September 30, 2021. 
• Price Action: CHGG shares are trading higher by 5.52% at $26.36 on the last check Monday.