Coursera's Acquisition Of Udemy Strengthens Its Enterprise Base
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Gary Alexander32.85K FollowersFollow5ShareSavePlay(9min)Comment(1)SummaryCoursera is acquiring Udemy in an all-stock deal, unlocking scale and efficiency at a compelling valuation.COUR leverages Udemy’s enterprise subscription strength, AI-focused content, and global reach to accelerate its own subscription and enterprise ambitions.The company expects synergies of $115 million in cost savings over 24 months.The combined company trades at an attractive ~8x adjusted EBITDA multiple before synergies and as low as ~5x including synergies.I reiterate a 'Buy' rating on COUR, citing value, strong Q3 results, and the stabilizing effect of the merger despite macro and integration risks. Sundry Photography/iStock Editorial via Getty Images 2025 was a big year for dealmaking, and activity has particularly focused on laggards in the small- and mid-cap space. In education, Coursera (COUR) just announced its all-stock purchase of its slightly smaller rival, Udemy (UDMY). Unusual for mergers isThis article was written byGary Alexander32.85K FollowersFollowWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood.Analyst’s Disclosure:I/we have a beneficial long position in the shares of COUR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.