Grammarly is acquiring productivity startup Coda, the company announced Tuesday. As part of the agreement, Shishir Mehrotra, CEO and co-founder of Coda, will become the new CEO of Grammarly.

Financial terms of the deal were not disclosed.

The acquisition will help transform Grammarly’s AI assistant into an “AI productivity platform” thanks to the addition of Coda’s AI tools and products, the company said. The deal gives Grammarly customers access to new features like generative AI chat and a productivity suite to work more efficiently.

Current Grammarly CEO Rahul Roy-Chowdhury said in a statement that he was stepping down from his role and that he would work alongside Mehrotra as an advisor.

Mehrotra, a 25-year tech veteran who previously served as chief product officer and chief technology officer at YouTube, outlined his vision for Grammarly in a blog post: to make the AI ​​assistant even smarter and more helpful.

“Imagine if Assistant not only made amazing suggestions and refinements based on the text it sees today, but also had permission-aware connections to all your other systems (from your email to documents to CRM to Project trackers and more),” wrote Mehrotra.

Additionally, Coda’s core product Coda Docs is updated with Grammarly Assistant.

“Long term, we plan to combine the best of Coda and Grammarly,” Mehrotra wrote. “It combines your business knowledge, AI generative chat capabilities, a full productivity suite, and hundreds of agents to help you work smarter.” Our goal is to redefine productivity for the AI ​​age.”

Founded in 2009, Grammarly has 40 million active users and is valued at $13 billion. Coda was valued at $1.4 billion following its Series D raise in 2021.

As AI assistants become more accessible, Grammarly’s acquisition of Coda will better position it to compete with companies developing AI tools for writing and productivity.