On Wednesday, shares of Udemy, Inc. (UDMY.US) surged over 26% to $6.80, while Coursera, Inc. (COUR.US) rose more than 6% to $8.45. The rally followed news that the two online education platforms have entered into a definitive merger agreement. Under the all-stock deal, Coursera will merge with Udemy to create a larger, integrated online learning platform.

Based on the closing prices of both companies on December 16, the combined entity carries an implied equity value of approximately $2.5 billion. As per the terms, Udemy shareholders will receive 0.8 shares of Coursera common stock for each Udemy share, representing a 26% premium over Udemy’s 30-day average closing price.

Post-merger, the company plans to implement a substantial stock repurchase program to optimize its capital structure and return value to shareholders. Financially, the merger is expected to significantly strengthen the combined business, with pro forma annualized revenue exceeding $1.5 billion. Additionally, annual run-rate cost synergies of approximately $115 million are anticipated within 24 months of closing.

Hugo Sarrazin, CEO of Udemy, stated that the unified platform will accelerate AI-driven product development, expand global reach through enhanced market capabilities, and unlock substantial revenue and operational synergies to bolster long-term financial performance.

The transaction has received unanimous approval from the boards of both Coursera and Udemy and is expected to close in the second half of 2026.