London-based education publisher Pearson has entered into an agreement with SHL Group to acquire workforce assessment services provider Personnel Decisions Research Institutes, LLC (PDRI).
PDRI has significant expertise in providing assessment solutions to the US federal government, one of the largest employers in the US with more than 4 million employees.
The consideration for PDRI represents an enterprise value of $190 million, which will be funded from Pearson's existing cash and available liquidity.
Completion of the acquisition is expected to occur during H1 2023 subject to regular closing conditions, including any required regulatory filings or approvals.
This acquisition further expands Pearson's portfolio, accelerating the company's strategy to capture new market opportunities and grow its presence with large employers.
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.
"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."