Chegg Acquires Math Problem Solver Mathway for About $100M

California-based education technology company Chegg has acquired Mathway, a free math problem solver, for approximately $100 million. There are potential additional payments of up to $15 million over the next three years depending on performance and other contigencies, according to Chegg.

Founded in 2002, Mathway is a mobile app that provides optical character recognition and step‑by‑step instruction to help students solve math problems. It offers 400+ different topics including pre-algebra, algebra, trigonometry, pre-calculus, calculus, linear algebra, and related disciplines.

Among its end users, around half are in high school, while 10% are teachers, professors or parents.

Mathway's 2019 unaudited net revenue was around $13 million. Chegg expects the Q2 2020 revenue contribution of Mathway to be around $0.5 million and an adjusted EBITDA loss of approximately $0.5 million.

“Math proficiency is a foundational and critical pillar of learning around the world. Bringing Mathway into the Chegg family will bring additional subject coverage, languages, and international reach, significantly expanding our TAM,” said Nathan Schultz, president of Learning Services at Chegg.