upGrad Acquires Unacademy in All-Stock Transaction

upGrad, an online higher education platform, has announced its intent to acquire edtech firm Unacademy through a term sheet established in an all-stock transaction. The specifics of the valuation will remain undisclosed until the deal is finalised and formally documented.

During an announcement on X, Ronnie Screwvala, co-founder of upGrad, shared that the acquisition will be arranged as a share swap, which includes a break fee clause should the transaction not be completed. He emphasised that Gaurav Munjal, co-founder and CEO of Unacademy, will continue his leadership role in the company, concentrating on the development of online learning products.

Screwvala stated that the union of both companies could leverage Unacademy’s strengths in product development alongside upGrad’s more extensive learning ecosystem. He noted that upGrad’s integrated model, which spans from K12 education to lifelong learning, could experience significant growth if the agreement is concluded.

Confirming the acquisition, Munjal conveyed that the planned takeover would be executed as a complete share swap deal. He highlighted recent strategic changes within Unacademy, mentioning that the firm has dedicated the past year to restructuring various aspects of its operations. Munjal explained that they have consolidated company-operated centres with franchise partners to better focus on creating exceptional online education products.

Additionally, Munjal reported that Unacademy has successfully completed a Rs 50 crore ESOP buyback, with around 40% of former employees participating. He indicated that the company currently holds over $100 million in cash reserves.