Chegg Inc. (NYSE: CHGG), an Internet company that rents textbooks and provides other services, is acquiring an on-demand tutoring service for $30 million U.S. in cash, the company said on Tuesday.
The deal for InstaEDU, which Chegg said is expected to close by the end of the month, furthers Chegg's push to diversify its business from school textbook rentals amid intensifying competition with Amazon.com Inc.
InstaEDU allows students to get help from online tutors in more than 2,500 subjects, from high school math to college-level science. The tutors connect with students through online video, audio and text chats.
Chegg shares took on 10.5 cents, or nearly 2%, in early trade on Tuesday, to sit at $5.52 U.S., in a 52-week trading range of $4.82 U.S. to $11.25 U.S.
