Chegg, Inc. (NYSE:CHGG), the leading student-first connected learning platform, today announced that it has entered into an accelerated share repurchase agreement (“ASR”) with J.P. Morgan Chase Bank, National Association to repurchase $150 million of Chegg’s common stock.
Under the ASR, Chegg will make an initial payment of $150 million to J.P. Morgan Chase Bank, National Association, and will receive an initial delivery of approximately 7.6 million shares of its common stock by February 24, 2023. The final number of shares to be repurchased will be based on the volume-weighted average price of Chegg’s common stock during the term of the ASR, less a discount. The final settlement of the ASR is expected to occur by the second quarter of 2023.
“We are excited about the opportunities before us and believe Chegg is best positioned to leverage advancements in technology along with our proprietary content, data, and expertise to help shape the rapidly evolving education landscape,” said Dan Rosensweig, CEO & President of Chegg, Inc. “This accelerated share repurchase is further evidence of our commitment to enhancing shareholder value and demonstrates the strength of our financial model and our ability to generate significant free cash flow.”
The ASR transaction will be effectuated pursuant to Chegg’s previously announced $2.0 billion securities repurchase program. As of January 31, 2023, $642.6 million remained available for future repurchases under this program and $492.6 million will remain available after completion of the ASR. 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.