Training and accreditation provider 2U Inc. (NASDAQ; TWOU) is paying $800 million in cash to acquire the assets of edX, a nonprofit provider of university-level massive open online courses formed by founding partners Harvard University and the Massachusetts Institute of Technology. The assets include the edX brand, website and marketplace; the nonprofit organization will continue to operate separately.
Plans call for the deal to close within 120 days; closure is subject to customary closing conditions.
“2U and edX were founded on a shared vision that online education has the power to expand access, create opportunity and transform lives,” said 2U co-founder and CEO Christopher “Chip” Paucek. “Alongside university partners and contributing faculty, Anant Agarwal and the edX team have built an innovative, respected, and globally recognized destination for online higher education.”
Combined, the companies will reach more than 50 million learners globally and serve more than 230 university and corporate partners. 2U plans to operate edX as a public benefit entity.
Offerings by edX include more than 3,000 online programs, including a substantial majority of courses with a free/audit track, masters and doctorate degrees, professional certificates, and microbachelors and micromasters programs.
Lanham, Maryland-based 2U’s services include more than 500 online offerings that encompass short courses, boot camps, professional certificates, and undergraduate and graduate degrees. 2U expects to offer many of these programs directly to learners through the edX.org marketplace.
2U anticipates revenue of $1 billion by the end of this year.
Proceeds from the sale will go to the nonprofit, which will continue to operate under the leadership of edX founding partners Harvard University and the Massachusetts Institute of Technology. The nonprofit will focus on inclusive learning and education.
“As edX looks to its next phase of growth and impact, joining forces with 2U marks a major milestone in our evolution,” said Anant Agarwal, founder and CEO of edX and MIT professor who developed edX’s first class. “2U’s people, technology, and scale will expand edX’s ability to deliver on its mission of providing access to high-quality education to enable all learners to unlock their potential.”
Agarwal will continue to be involved in the delivery of the edX mission and will determine his future role in the coming months.