Business
Pearson to Acquire PDRI
Pearson to Acquire PDRI.
About this update from Pearson Plc
[{"type":"text","content":"\n \n \n Pearson to Acquire Workforce Assessment Provider, PDRI\n \n \n \n \n \n \n \n \n \n Acquisition to significantly expand Pearson's services to U.S. Federal Government\n \n \n \n \n \n \n \n \n \n LONDON: 19 December 2022 -\n \n 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.\n This acquisition further expands Pearson's portfolio, accelerating the Company's strategy to capture new market opportunities and grow its presence with large employers.\n \n \n \n \n \n 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 utilised to assess more than 500,000 applicants annually.\n \n \n \n \n \n PDRI will join Pearson's Assessment & Qualifications division. Within this division, Pearson and PDRI already have an established, strong working relationship, partnering to deliver assessments to federal jobseekers at Pearson VUE test centers. 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.\n \n \n \n \n \n The consideration for PDRI represents an enterprise value of $190m, 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. In the year ending December 2021, PDRI recognised revenues of $33m and delivered EBITDA CAGR of 12% from 2018-2021. The acquisition will be accretive to growth and margins for our Assessment & Qualifications division, as well as driving returns for shareholders.\n \n \n \n \n \n ...