MOUNTAIN VIEW, California: Two of the biggest names in online education are joining forces, as Coursera said it would acquire rival Udemy in an all-stock deal that values the combined company at US$2.5 billion, underscoring consolidation in the sector after a post-pandemic slowdown.

Under the agreement, Udemy shareholders will receive 0.8 shares of Coursera for each share they hold, valuing Udemy at about $930 million, according to a Reuters calculation. Coursera shares rose about four percent following the announcement, while Udemy surged nearly 22 percent.

The companies are betting that scale and complementary offerings will help them better tap corporate demand for workforce training, particularly in artificial intelligence, data science, and software development. Employers have been investing more heavily in reskilling workers as generative AI reshapes jobs and business models.

"At a high level, it seems like this deal makes sense both strategically and financially. We have long viewed a combination of these two companies as compelling given their complementary content offerings and solutions, and the potential for significant cost synergies given overlapping end-markets," said Stephen Sheldon, analyst at William Blair.

Based on Coursera's most recent closing price, the offer implies a value of about $6.35 per Udemy share, representing a premium of roughly 18.3 percent. The companies said they expect the transaction to close in the second half of next year, subject to regulatory and shareholder approvals.

Coursera partners with universities and institutions to offer degree programs and professional certificates and has increasingly shifted its focus toward enterprise customers. San Francisco-based Udemy, by contrast, operates a marketplace model, allowing independent instructors to sell individual courses and subscriptions, including packages tailored for businesses.

Together, the companies believe the combined platform will be better positioned to compete for large corporate contracts and meet growing demand for job-relevant skills training.

Despite firms across the sector pitching AI upskilling as a significant growth opportunity, investor sentiment toward online education companies has remained cautious. Shares have generally lagged broader markets amid concerns about intense competition, pricing pressure, and uncertain returns from investments tied to artificial intelligence.

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Udemy shares are down about 35 percent so far this year, while Coursera has fallen roughly seven percent over the same period. Both companies continue to trade well below their post-initial public offering highs, reflecting the broader challenges facing the online education industry.