Coursera (COUR.N) announced on Wednesday that it will acquire rival online education platform Udemy (UDMY.O) in an all-stock transaction, creating a combined company valued at $2.5 billion. The deal represents a significant step in the consolidation of the online learning sector, which has faced a post-pandemic slowdown and increased investor scrutiny.

Deal Structure and Financial Terms

Under the agreement, Udemy shareholders will receive 0.8 Coursera shares for each Udemy share they hold, valuing the company at approximately $930 million, an 18.3% premium over recent trading prices. Coursera shares rose 4% on the announcement, while Udemy shares jumped nearly 22%.

The transaction is expected to close in the second half of 2026, pending regulatory and shareholder approvals. Analysts highlight that the combination could unlock cost synergies and leverage complementary course offerings and enterprise solutions.

Strategic Focus: AI and Workforce Training

Both companies are targeting growing corporate demand for workforce reskilling, particularly in areas such as artificial intelligence, data science, and software development. With generative AI reshaping industries, employers are investing heavily in employee upskilling, creating a fertile market for online learning platforms.

Stephen Sheldon, an analyst at William Blair, commented:
“At a high level, this deal makes sense strategically and financially. The combination of Coursera and Udemy is compelling due to their complementary content and the potential for significant cost synergies in overlapping markets.”

Coursera has focused on degree programs and professional certificates through partnerships with universities and institutions, while Udemy operates a marketplace for independent instructors, offering individual courses and business subscriptions.

Market Context and Challenges

Despite AI-driven growth potential, online education stocks have underperformed broader markets amid heightened competition, pricing pressures, and uncertain returns on AI investments. Udemy shares have declined about 35% year-to-date, while Coursera is down roughly 7%, trading well below post-IPO highs.

The acquisition positions the combined firm as a major player in AI-focused online education, potentially accelerating adoption by enterprises looking to upskill employees in emerging technologies.