(Sharecast News) - Educational publisher Pearson said on Monday that it has agreed to buy workforce assessment services provider Personnel Decisions Research Institutes (PDRI) from SHL Group for $190m.
Pearson said PDRI has significant expertise in providing assessment solutions to the US federal government, one of the largest employers in the US with more than 4m 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," it said.
PDRI will join Pearson's Assessment & Qualifications division. Pearson noted that within this division, it already has "an established, strong working relationship" with PDRI, partnering to deliver assessments to federal jobseekers at Pearson VUE test centres.
Pearson said 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, the business recognised revenues of $33m and delivered an EBITDA compound annual growth rate of 12% from 2018-2021.
Chief executive Andy Bird 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."
Completion of the deal is expected in the first half of next year.
Pearson (PSON)