Pearson to Acquire Workforce Assessment Provider, PDRI

Rhea-AI Summary

Pearson has agreed to acquire Personnel Decisions Research Institutes (PDRI) for an enterprise value of $190 million. This strategic move aims to enhance Pearson's offerings in workforce assessment services, particularly for the U.S. Federal Government, which employs over 4 million individuals. PDRI is known for its expertise in tailored assessments and has a collaboration with the Office of Personnel Management for the USA Hire platform, serving more than 40 federal agencies and assessing over 500,000 applicants annually. The acquisition is expected to close in H1 2023.

Positive

• Acquisition of PDRI expands Pearson's presence in the U.S. Federal Government market.
• The USA Hire platform enhances Pearson's ability to provide assessment services to federal agencies.
• The acquisition is expected to unlock synergies between Pearson and PDRI, potentially leading to improved service offerings.

Negative

• The acquisition will be funded from Pearson's existing cash, potentially impacting liquidity.
• Regulatory approvals are needed, which may delay the acquisition process.

Acquisition to significantly expand Pearson's services to U.S. Federal Government  

HOBOKEN, N.J., Dec. 19, 2022 /PRNewswire/ -- Pearson today announces it has entered into an agreement with SHL Group to acquire Personnel Decisions Research Institutes, LLC ('PDRI'), a trusted provider of workforce assessment services. PDRI has significant expertise in providing assessment solutions to the U.S. federal government, one of the largest employers in the U.S. with more than 4 million employees. This acquisition further expands Pearson's portfolio, accelerating the Company's strategy to capture new market opportunities and grow its presence with large employers.  

Pearson's acquisition significantly expand its services to U.S. Federal Government   

Founded in 1975, PDRI has built a strong reputation for delivering quality talent assessments, including tailored assessments to support hiring practices for U.S. federal government agencies. The acquisition significantly expands Pearson's services to U.S. federal agencies, including through PDRI's partnership with the Office of Personnel Management to deliver the USA Hire platform. The USA Hire platform serves more than 40 agencies and is utilized to assess more than 500,000 applicants annually.  

PDRI will join Pearson's Assessment & Qualifications division. Within this division, Pearson and PDRI already have an established, strong working relationship, partnering to deliver high quality assessments to federal jobseekers at Pearson VUE test centers. This acquisition unlocks synergies between Pearson and PDRI, while bringing new capabilities to Pearson as the company grows its long-standing enterprise learning presence. 

"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," said Andy Bird, Chief Executive of Pearson. "Together, we will have a stronger proposition and a larger platform from which to drive future growth."   

"Pearson has an excellent reputation in the assessments field, and we are excited to become a part of their growth strategy," said Elaine Pulakos, Chief Executive Officer of PDRI. "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." 

Completion of the acquisition is expected to occur during H1 2023 subject to regular closing conditions, including any required regulatory filings or approvals. The consideration for PDRI represents an enterprise value of $190m, which will be funded from Pearson's existing cash and available liquidity.

Contact
Dan Nelson, Dan.Nelson@pearson.com

About Pearson
At Pearson, our purpose is simple: to add life to a lifetime of learning. We believe that every learning opportunity is a chance for a personal breakthrough. That's why our c.20,000 Pearson employees are committed to creating vibrant and enriching learning experiences designed for real-life impact. We are the world's leading learning company, serving customers in nearly 200 countries with digital content, assessments, qualifications, and data. For us, learning isn't just what we do. It's who we are. Visit us pearsonplc.com. 

About PDRI 

Since 1975, PDRI has built a global reputation of excellence by designing, developing and implementing high-quality, innovative talent management solutions that adhere to the highest principles of professional practice. PDRI's suite of integrated talent management solutions helps government and commercial clients hire, train, develop, manage and motivate high-performance organizations. For more information visit www.pdri.com.

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SOURCE Pearson

FAQ

What is the value of Pearson's acquisition of PDRI?

The acquisition of PDRI by Pearson is valued at $190 million.

How will the acquisition of PDRI affect Pearson's services?

The acquisition will significantly expand Pearson's offerings in workforce assessment services for the U.S. Federal Government.

When is the expected completion date for the acquisition of PDRI?

The acquisition is expected to be completed during the first half of 2023.

What is the USA Hire platform, and how is it related to the acquisition?

The USA Hire platform, managed by PDRI, assesses over 500,000 applicants annually for more than 40 federal agencies, enhancing Pearson's assessment capabilities.

What opportunities does the acquisition of PDRI present for Pearson?

The acquisition unlocks synergies and expands market opportunities, potentially driving future growth for Pearson.