Shares of Udemy, Inc. (NASDAQ:UDMY) are rising Wednesday after the education technology company announced a merger with Coursera, one of its competitors.
- Udemy shares are climbing with conviction. What’s fueling UDMY momentum?
What To Know: Coursera will combine with Udemy in an all-stock deal with an implied equity value of $2.5 billion. Under the definitive merger agreement, Udemy stockholders will receive 0.8 shares of Coursera common stock for each share of Udemy common stock currently held.
Udemy said Coursera’s consumer and enterprise segments are highly complementary, especially in the skills, workforce training and career advancement areas. The two anticipate selling AI-enhanced tools and data-driven insights to customers in enterprise, university and government spaces.
The merger is also expected to significantly reduce operating expenses by $115 million within two years of closing, giving the combined company a more robust financial profile.
“By combining the highly complementary strengths of Coursera and Udemy, we will be in an even stronger position to address the global talent transformation opportunity, unlock a faster pace of innovation, and deliver valuable experiences and outcomes for our learners and customers,” said Greg Hart, CEO of Coursera.
Existing Coursera stockholders are expected to own approximately 59% of the combined company and existing Udemy stockholders are expected to own approximately 41% on a fully diluted basis. Coursera said it may engage in a stock repurchase program once the merger is completed.
UDMY Price Action: Udemy shares were up 22.35%, trading at $6.57 at the time of publication, according to Benzinga Pro.
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