Chegg has long supplemented educational materials from other companies, but is — with its latest acquisition — gearing up to provide its own non-degree level credentials.
Student services company Chegg announced plans last week to acquire the online coding school Thinkful. To investors in the ed-tech space, the deal was not a surprising one — lots of ed-tech companies have been busy acquiring boot camps of late. Earlier this year, online program management company 2U snapped up Trilogy Education for a cool $750 million, and Zovio (formerly Bridgepoint Education) acquired Fullstack Academy for $17.5 million in cash plus 4.5 million shares of common stock.
But for Chegg, which started out as a textbook rental company, the deal represents a notable departure. Chegg already offers a wide range of educational services, such as online tutoring and test prep, but this acquisition marks its first big step into educational provider territory. It is also Chegg’s biggest acquisition to date.