Private investment firm Comvest Partners acquires the financially troubled e-retailer, which filed for Chapter 11 bankruptcy protection in March.
The Top 500 retailer buys Campus Deals, which offers mobile coupons to college students.
Top 500 online textbook rental company Chegg Inc. will now offer college students discounts on pizza, clothes and all the other goods that make life hum for young consumers, thanks to an acquisition announced today.
Chegg has bought Campus Deals, which offers discounts through its web site, its mobile app and coupon books that are distributed to six million college students at more than 500 universities, according to Campus Deals. Chegg expects to expand the deals to more than 1,000 schools within 18 months—in large part through the efforts of 750 paid interns that Campus Deals plans to train next week in Chicago.
Chegg, No. 103 in the Internet Retailer 2013 Top 500 Guide—a new edition is forthcoming next week—did not say how much it paid for Campus Deals, which will now go by Chegg Campus Deals. Chegg promises more details during its May 1 quarterly earnings call.
"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,” Dan Rosensweig, Chegg's CEO, says. “We are excited to expand quickly and add new colleges, advertisers and students to the platform. Culturally, we gain a strong team, a great on-campus presence and a shared commitment to putting students first.”
According to Top500Guide.com, Chegg has been growing rapidly. The web-only retailer’s online sales went from an estimated $10 million in 2008 to an estimated $250 million in 2012, a compound annual growth rate of 123.6%. Chegg attracts an average of nearly 1.8 million monthly unique visitors, and 55% of those visitors have been on the site before. In 2013, Chegg reported a nearly 20% year-over-year revenue increase. Its net loss was $55.9 million compared with a net loss of $49.04 million in 2012.
Last year, Chegg filed for an initial public offering of stock, with the IPO raising about $187 million. The company has a $455 million market valuation.