2U agrees to acquire edX from Harvard and MIT for $800 million

2U, a publicly traded provider of online degree programs for universities, announced on June 29, 2021 that it would acquire edX, the online course platform created by Harvard University and the Massachusetts Institute of Technology, for $800 million in cash.

Under the agreement, 2U would run edX as a public benefit entity, while the proceeds would pass to a nonprofit led by Harvard and MIT that focuses on new approaches to learning, on reducing educational inequities and on continued development of the open-source Open edX software. Inside Higher Ed reported that 2U committed to keep offering free versions of courses, to protect the intellectual property of faculty and partner universities and to safeguard learner privacy. 2U planned to fund the purchase with cash on hand, including the proceeds of a recent $475 million term loan. Closing was expected within about 120 days, subject to regulatory approval.

Harvard and MIT established edX in 2012 and had invested $80 million in it. The companies said the combined business would reach more than 50 million learners, work with over 230 partners and list more than 3,500 digital programs.