Pearson to acquire workforce assessment provider PDRI

Pearson has entered into an agreement with SHL Group to acquire workforce assessment provider Personnel Decisions Research Institutes LLC (PDRI). 

PDRI provides assessments to the US federal government. Pearson said the move “further expands” its portfolio and “accelerates” the company’s strategy to “capture new market opportunities and grow its presence with large employers”. 

PDRI will join Pearson’s Assessment & Qualifications division. Pearson said: “Within this division, Pearson and PDRI already have an established, strong working relationship, partnering to deliver assessments to federal jobseekers at Pearson VUE test centres. This acquisition unlocks synergies between Pearson and PDRI, whilst bringing new capabilities for Pearson to explore as the company grows its long-standing enterprise learning presence.” 

The consideration for PDRI represents an enterprise value of $190m (£156m), which will be funded from Pearson’s existing cash and available liquidity. PDRI has a “highly attractive financial profile with an impressive revenue growth opportunity, good margins and strong cash flow conversion” the publisher said. It hopes the acquisition will be “accretive to growth and margins” for the Assessment & Qualifications division, “as well as driving returns for shareholders”. 

Completion of the acquisition is expected to occur during the first half of 2023 “subject to regular closing conditions, including any required regulatory filings or approvals”. 

Andy Bird, chief executive of Pearson, said: “We are pleased to have the opportunity to expand this important market for Pearson and our assessments business. Pearson and PDRI share a culture and commitment of serving trusted, secure, and innovative assessment solutions to major employers and millions of people looking to establish and grow their careers. Together, we will have a stronger proposition and a larger platform from which to drive future growth.” 

Elaine Pulakos, chief executive officer of PDRI, added: “Pearson has an excellent reputation in the assessments field, and we are excited to become a part of their growth strategy. There is a significant opportunity to learn from each other to further improve our products and reach more customers with our proven assessment and talent solutions.”