Coursera to Acquire Udemy in $2.5bn All-Stock Deal as Online Education Sector Consolidates

Coursera has agreed to acquire rival online learning platform Udemy in an all-stock deal that values the combined business at about $2.5 billion.

The deal ranks among the biggest mergers in a sector still adjusting to slower growth after the pandemic surge.

Under the terms of the agreement, Udemy shareholders will receive 0.8 shares of Coursera for each Udemy share they own. Based on recent market prices, that puts Udemy’s valuation at roughly $930 million and represents a notable premium on its recent trading levels. 

The transaction is expected to close in the second half of next year, subject to regulatory and shareholder approvals.

This deal brings together two platforms with different strengths at a time when scale counts more than ever. Coursera has built its reputation through partnerships with universities and institutions, providing degrees and professional certificates. 

Udemy, by contrast, runs a large marketplace of independent instructors selling courses to individuals and companies. Together, they are betting that breadth, brand and reach will help them win more corporate clients and lock in steadier subscription revenue.

Growth in consumer enrolments has cooled, while employers are becoming more selective about where they spend on training. Both companies are now positioning the combined platform as a go-to destination for workforce skills in areas such as data, software development and emerging technologies.

Greg Hart, Coursera’s chief executive, described the merger as a response to fast-changing job demands. “We’re at a pivotal moment in which AI is rapidly redefining the skills required for every job across every industry. Organisations and individuals around the world need a platform that is as agile as the new and emerging skills learners must master,” he said.

Udemy’s Chief Executive, Hugo Sarrazin, said the tie-up would extend the company’s reach and speed up product development. “Through this combination with Coursera, we will create meaningful benefits for our learners, enterprise customers, and instructors, while delivering significant value to our shareholders, who will participate in the substantial upside potential of the combined company,” he said.

Financially, the companies expect the merger to enhance their cost base. They project more than $1.5 billion in combined annual revenue and estimate cost savings of about $115 million a year within two years of closing. Coursera has also indicated it plans to pursue a sizeable share buyback programme after the deal is completed.

The boards of both companies have unanimously approved the transaction. Once closed, Coursera shareholders are expected to own about 59 per cent of the combined company, with Udemy shareholders holding the remaining 41%. 

The enlarged group will operate under the Coursera name, trade on the New York Stock Exchange, and be headquartered in Mountain View, California. Udemy’s shares will be delisted from Nasdaq.

Online education stocks have lagged broader indices this year, weighed down by pricing pressure and doubts about long-term returns from new technology investments. Udemy shares are down sharply year-to-date, while Coursera has also fallen, leaving both well below their post-listing highs.

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