Coursera and Udemy said they will merge in $2.5 billion deal that combines two learning platforms and expands their enterprise reach.
Under the terms of the deal, Udemy shareholders will receive 0.80 shares of Coursera for every share they own. The two companies were rivals, but Coursera had a strong footprint in consumer and higher education and was building out its enterprise offerings. Udemy had the enterprise footprint and was expanding into other areas.
The combined company will have sales evenly divided between consumer and enterprise and be able to scale much faster.
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Key points about the deal include:
- Coursera and Udemy said the combined company will have more than $1.5 billion and be able to save $115 million annually within 24 months.
- Udemy's skills development marketplace will be combined with Coursera's university ecosystem.
- Coursera CEO Greg Hart said the acquisition is designed to address how AI is redefining work. "We’re at a pivotal moment in which AI is rapidly redefining the skills required for every job across every industry. Organizations and individuals around the world need a platform that is as agile as the new and emerging skills learners must master," said Hart.
- The combined company will also be able to speed up its AI roadmap and scale sales efforts, said Udemy CEO Hugo Sarrazin.
- Coursera and Udemy will have a larger roster of instructors and subject matter experts.
- The companies have been developing similar efforts on parallel tracks, but the need for speed pointed to a merger. "This deal is about accelerating innovation. By combining our data, our talent and our resources, we can execute an AI-powered product road map far faster than either business could accomplish alone. We will leverage our insights to deliver personalized adaptive learning experiences that support career advancement for individuals and integrate directly into the flow of work for enterprise customers," said Sarrazin.
- The combined platform of the Coursera-Udemy combination will include Coursera Coach, Udemy's AI Role Play simulation technology and MCP server.
- Udemy has more than 17,000 enterprise customers and Coursera brings a total learner base of 191 million people. The combined company will have more than 270 million individual learners.
Speaking on a conference call with analysts, Hart said the timing was right for a merger. "To understand why this combination is necessary now, we must first look at the reality our learners and customers face. The World Economic Forum estimates that 39% of key skills will change in the next 5 years. And our own data shows that 86% of learners come to Coursera specifically to transform their careers. Learners need guidance on the skills they need to advance their career. Organizations need talent and tools that adapt. Both need a platform as agile as the rapidly evolving labor market," said Hart.
Hart added that the combined company will be better equipped to address lifelong learning. "Together, we'll build a unified system of record that allows leaders to benchmark, develop and track the skills of their talent across every stage of their career," said Hart.
