Udemy and Coursera agreed to merge in a deal that will create a combined online education company with an equity value of $2.5 billion.

Udemy surged 30% and Coursera shares rose 13% after initially slumping 11% on the news.

Udemy shareholders will receive 0.8 shares of Coursera common stock for each share of Udemy they own, representing a 26% premium to the average closing prices of Udemy and Coursera over the last 30 trading days prior to announcement.

Coursera stockholders will own 59% of the combined company with Udemy stockholders holding the rest.

The transaction is expected to close by the second half of 2026.