What is the news?
Edtech company UpGrad has signed a deal to acquire rival Unacademy through an all-share transaction. Company founders Ronnie Screwvala and Gaurav Munjal announced this in a post on X. Munjal said that the proposed acquisition will be done through 100 per cent share swap. He also said that the valuation of the deal will be made public only after the completion of the transaction and completion of regulatory formalities.
What did the founders of both companies say?
“In UP, we have signed an agreement to acquire Unacademy. This acquisition is entirely stock based,” Ronnie Screwvala wrote in the post. Gaurav Munjal, on the other hand, said that he will remain the Founder and CEO of Unacademy and will work to focus on creating online education products that learners love. The deal comes amid several strategic changes that have taken place at Unacademy over the past year.
Talks were going on for several months
UpGrad had been in talks to acquire Unacademy for several months, but the talks were stalled in the initial stages due to differences over valuation. Initial discussions focused on an all-stock deal, valuing Unacademy at around $300 million (about Rs 2,700 crore). This represents a huge decline of more than 90 percent from its peak value of $3.4 billion (about Rs 306 billion).
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