Coursera shares sink after Udemy acquisition announcement

Investing.com -- Shares of Coursera fell nearly 11% on Wednesday after the online education company announced plans to merge with Udemy in an all-stock transaction.

The deal, valued at approximately $2.5 billion based on closing prices from Monday, will see Udemy stockholders receive 0.800 shares of Coursera common stock for each Udemy share they hold. This represents a 26% premium to the average closing prices over the 30 trading days prior to the announcement.

Following the completion of the transaction, existing Coursera stockholders will own approximately 59% of the combined company, while Udemy stockholders will own approximately 41% on a fully diluted basis.

The boards of directors of both companies have unanimously approved the merger agreement. Coursera anticipates the combination will generate annual run-rate cost synergies of $115 million within 24 months after closing.

The merged entity is expected to achieve pro forma annual revenue exceeding $1.5 billion, according to the company’s statement.

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