After launching a wide-ranging feasibility study late last year, the two institutions announced on Sunday they'd signed an agreement to create Adelaide University, which is scheduled to begin operating from 2026.
The new university is forecast to generate an extra $500 million annually for the state economy by 2034, create an additional 1200 jobs and educate more than 70,000 students.
It could also attract 6000 more international students, add $100m in annual research revenue and help an extra 800 people from low socio-economic backgrounds into study.
The state government will back the plan with a $445m support package, including the establishment of two perpetual funds to help grow research and attract more students.
The package includes cash to buy up university land that will no longer be required.
Both universities have committed to no compulsory redundancies ahead of the expected 2026 start and for 18 months after.
Premier Peter Malinauskas said the new university would be the largest educator of domestic students in Australia and would have the scale and resources to be positioned in the top 100 in the world.
"We will sustainably have one of Australia's best and top-ranked universities here in our state. Importantly, this new university will be accessible to everyone with the capacity to succeed," he said.
"This is an idea which has been talked about for years and years. The time for talk is over, the time for action has arrived."
The new deal will need the approval of state parliament, with legislation expected to go before the house later this year or early in 2024.
The proposal is likely to be scrutinised by a parliamentary committee before any vote is taken.
In a joint statement, University of Adelaide vice-chancellor Peter Hoj and University of South Australia vice-chancellor David Lloyd said they envisaged an institution that would be a place for outstanding educators, researchers and innovators that would consistently rank in the top one per cent of universities worldwide.
"Establishing a new Australian university in this fashion provides a unique opportunity to accelerate ambitions for higher education in this state and nation," they said.
"By combining our strengths, this new university will be renowned from day one, placing our graduates among the most sought-after in the world."
Adelaide's third major tertiary provider, Flinders University, said the merger marked a significant milestone for the state's higher education sector.
Vice-Chancellor Colin Stirling wished both institutions well as they embarked on the complex task of delivering on their plans.
"Higher education is the engine room driving South Australia's social and economic growth while creating the skills and knowledge necessary to drive the state forward," Professor Stirling said.
"It is critical that the South Australian university sector is strong and internationally competitive and at Flinders we look forward to continuing to play our part."
30°C