Hoboken-based Pearson on Monday said it will acquire Personnel Decisions Research Institutes LLC, a provider of workforce assessment services, particularly to the U.S. federal government — one of the largest employers in the U.S., with more than 4 million employees.
This acquisition is expected to be completed during the first half of 2023. The consideration for PDRI represents an enterprise value of $190 million, which will be funded from Pearson’s existing cash and available liquidity.
Once PDRI is acquired, Pearson will be able to capture new market opportunities and grow its presence with large employers, specifically with U.S. federal agencies. The deal will also help Pearson expand its portfolio and, through PDRI’s partnership with the Office of Personnel Management, will deliver the USA Hire platform which 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 job-seekers 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,” Andy Bird, CEO of Pearson, said. “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,” Elaine Pulakos, CEO of PDRI, said. “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.”