Benzinga | Nov 29, 2021 09:04AM EST

Chegg Announces Proposed $300M Accelerated Share Repurchase

Chegg, Inc. (NYSE:CHGG) today announced that its board of directors authorized Chegg to enter into a proposed accelerated share repurchase ("ASR") transaction to repurchase $300 million of Chegg's common stock. The Company intends to enter into an ASR transaction with a financial institution during the fourth quarter of 2021, subject to market conditions.

"The accelerated share repurchase demonstrates the strength of our balance sheet, and it reaffirms our confidence in the long-term opportunity for Chegg, as well as our continued commitment to enhancing shareholder value," said Chegg's CEO, Dan Rosensweig. "Chegg believes there are robust growth opportunities, both organically and inorganically, to serve our existing customers and increase our TAM, so we can serve more learners around the world. We are firm believers in the future growth of online education and skills services globally and in Chegg's position to support students on their path from learning to earning."

The proposed ASR transaction will be effectuated pursuant to Chegg's previously announced $1.0 billion securities repurchase program that was announced earlier this month. As of September 30, 2021, $665.5 million remained available for future repurchases under this program. There is no expiration date for the repurchase program and it will continue until otherwise suspended, terminated or modified at any time for any reason by our board of directors.