Coursera has announced plans to acquire rival online learning platform Udemy in a share based transaction that values the combined business at about $2.5 billion. According to Reuters, the deal comes as the online education industry adjusts to slower growth after the pandemic surge and faces tougher scrutiny from investors.

Under the terms of the agreement, Udemy shareholders will receive 0.8 shares of Coursera for each Udemy share they own. Based on Coursera’s most recent closing price, this values Udemy at roughly $930 million and represents a premium of about 18.3 percent, according to Reuters calculations.

Investors reacted swiftly to the announcement. Coursera shares rose by around 4 percent, while Udemy stock jumped nearly 22 percent, reflecting optimism about the strategic value of the merger.

Focus on corporate training and AI skills

Coursera and Udemy believe the combined platform will be better positioned to meet growing corporate demand for workforce training. According to reports, companies are increasing investment in areas such as artificial intelligence, data science and software development as they seek to reskill employees amid rapid advances in generative AI.

Commenting on the deal, Stephen Sheldon, an analyst at William Blair, said the combination appears compelling on both strategic and financial grounds. He noted that the companies offer complementary content and services and could benefit from meaningful cost savings due to overlap in their target markets.

Deal timeline and business models

Based on current projections, the companies expect the transaction to close in the second half of next year, subject to regulatory clearance and approval by shareholders.

Coursera works closely with universities and other institutions to provide degree programmes and professional certificates. In recent years, it has placed greater emphasis on serving enterprise customers. Udemy, by contrast, operates a marketplace where independent instructors sell individual courses, as well as subscriptions tailored to businesses.

Investor caution still lingers

Despite strong narratives around AI driven upskilling, investors remain cautious about the online education sector. Shares across the industry have underperformed the broader market due to concerns about competition, pricing pressure and the uncertain payoff from investments linked to artificial intelligence.

According to Reuters, Udemy shares are down about 35 percent so far this year, while Coursera has fallen roughly 7 percent over the same period. Both companies continue to trade well below the highs reached after their initial public offerings.