Coursera (NYSE:COUR) said it has agreed to combine with rival online learning platform Udemy (NASDAQ:COUR) in an all-stock transaction valued at about $2.5 billion.
Shares of Udemy surged 21.7% to about $6.50 on the news, while Coursera stock added 3.6% at about $8.
The merger brings together Coursera’s partnerships with universities and industry organizations and Udemy’s marketplace of instructor-led courses, creating a platform aimed at serving individual learners as well as enterprise, academic, and government customers.
The companies said the combined business would generate more than $1.5 billion in pro forma annual revenue.
Coursera said it expects the deal to strengthen its financial profile, citing anticipated annual run-rate cost synergies of roughly $115 million within 24 months of closing. The company also said it plans to pursue a share repurchase program after the transaction is completed.
“This combination reflects the growing demand for flexible and continuously updated skills as AI reshapes the global workforce,” Coursera CEO Greg Hart said in a statement.
Under the terms of the deal, Udemy shareholders will receive 0.800 shares of Coursera common stock for each Udemy share held, representing a premium of about 26% to the companies’ average share prices over the 30 trading days prior to the announcement.
Based on the companies’ closing prices on December 16, the combined entity would have an implied equity value of approximately $2.5 billion.
Following the transaction, Coursera shareholders are expected to own about 59% of the combined company, with Udemy shareholders holding the remaining 41%, on a fully diluted basis.