New Delhi, Dec. 17 -- In a landmark move for the digital education sector, Coursera announced on Wednesday that it has entered into a definitive agreement to acquire rival Udemy. The all-stock transaction values the combined entity at approximately $2.5 billion, signaling a major consolidation as the industry pivots toward corporate AI training.

Under the terms of the agreement, Udemy shareholders will receive 0.8 shares of Coursera for every share held. The deal implies an acquisition price of approximately $6.35 per Udemy share - a 26% premium over the 30-day average closing price.

Wall Street reacted sharply to the merger news.

Udemy shares surged nearly 28% in intraday trading.

Coursera shares rose approximately 8% as investors we...