Two brothers from a family in Berlin developed a popular maths tutoring app called Math42. Now, an American company is buying the start-up for 20 million euros.
In 2015, the two brothers presented their app on TV. At the time, the well-known investor, Frank Thelen, was so impressed that he could sell the company for one hundred million euros. Now, two years later, Math42 is completing an exit, with Cogeon, the company behind Math24 being sold to the US company, Chegg.
Chegg lends and sells online schoolbooks and is worth $1.7 billion on the stock market. The purchase price for Math42 is 20 million euros, with 12.5 million having already been paid, and 7.5 million to follow. Up to a further 3.2 million could be added in Chegg shares.
Most of the money will go to the Nitsche family who started Math42 about five years ago. After a financing round at the end of 2015, they still owned 93.75 percent of the company. The publisher Michael Klett and his son David, who are behind the German educational publishing house Klett, then put a six-digit amount into the Berlin start-up. In October 2016, they invested 500,000 euros for a 10.7 percent share in Math24.
The tutoring app Math42 teaches pupils complicated mathematical formulas step by step. Through the sale they are now able to provide their “important education technology” for millions of pupils and students, said father Thomas Nitsche. In the second half of 2018, a new product will be launched – under the name of Chegg Math.