Top 500 college textbook e-retailer Chegg.com buys Internships.com for $10 million
October 2, 2014 05:12 PM
Online textbook rental company Chegg Inc. has made another acquisition that furthers its goal of providing a broad range of digital services to college students. Chegg acquired Interships.com for $10 million in cash and $1 million in stocks, the company announced today.
Interships.com is an online marketplace that allows students to seek out and secure paid and unpaid internships. It has two million registered users, 380 university relationships and 90,000 internships from 60,000 companies, Chegg says. Chegg will move the Internships.com assets into the Career Center section of its web site that helps students explore careers, build skills, and land internships and entry-level jobs.
"With this acquisition, Chegg is poised to disrupt the highly inefficient and fragmented $5 billion college recruiting market," says Chegg CEO Dan Rosensweig, "Adding Internships.com enables Chegg to fundamentally improve matching between students and employers, helping businesses to better identify the best candidates and students to develop the real world job skills they'll need upon graduation."
Chegg was founded in 2005 as an online textbook rental company. In the last couple of years, it has progressively worked to transition expand this business model to offer more online services to college students.
For example, in June, Chegg acquired online tutoring center InstaEDU for $30 million, so Chegg members can now link up with potential tutors online and communicate via e-mail or online video chat. In April, it bought Campus Deals, which offers mobile coupons to college students. Chegg did not disclose the purchase price. Also, in September, Chegg announced a deal to outsource the product sourcing, warehousing, fulfillment and rental returns of all inventory to Ingram Content Group Inc. so that it can better focus on its digital initiatives.
Digital revenue represented 29% of total sales during the second quarter, compared with 22% in the second quarter of 2013. The company aims to bring in 50% of its revenue from its digital businesses by 2016.
Chegg, ranked No. 114 in the Internet Retailer Top 500 Guide, began trading as a public company in August 2013. It’s currently valued at around $510 million.