UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the
month of March
2023
PEARSON plc
(Exact
name of registrant as specified in its charter)
N/A
(Translation
of registrant's name into English)
80 Strand
London, England WC2R 0RL
44-20-7010-2000
(Address
of principal executive office)
Indicate
by check mark whether the Registrant files or will file annual
reports
under
cover of Form 20-F or Form 40-F:
Form
20-F
X
Form 40-F
Indicate
by check mark whether the Registrant by furnishing the
information
contained
in this Form is also thereby furnishing the information to
the
Commission
pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934
Yes
No X
Pearson Completes Acquisition of Workforce Assessment Provider,
PDRI
Acquisition to significantly expand Pearson's services to U.S.
Federal Government
LONDON - 23 March 2023 - Pearson today announces
it has completed the acquisition of 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. PDRI will now operate under the
'PDRI by Pearson' brand name.
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.
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.
The consideration for PDRI represents an enterprise value of $190m,
which has been 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.
Andy Bird, Chief Executive of Pearson, said: "We are pleased to
have completed the acquisition of PDRI, which provides an excellent
opportunity to expand our reach in this strategically 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. We look forward
to welcoming the PDRI team to Pearson and together we will be fully
focused on executing against the growth opportunity
ahead."
Elaine Pulakos, Chief Executive Officer of PDRI said: "We are
excited to be joining Pearson and look forward to becoming part of
the growth strategy. Pearson has a reputation for quality in the
assessments field and combined with our proven assessment and
talent solutions, we see significant opportunity to further improve
our products and reach more customers collectively. Our attention
is now firmly directed towards delivering on our growth
ambitions."
###
Contacts:
Investor Relations
Jo Russell +44 (0) 7785 451 266 / James Caddy +44 (0) 7825 948 218
/ Gemma Terry +44 (0) 7841 363 216
Teneo
Charlie Armitstead +44 (0) 7703 330 269
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 most countries and
territories around the world with digital content, assessments,
qualifications, and data. For us, learning isn't just what we do.
It's who we are. Visit us at https://plc.pearson.com/en-GB.
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.
Forward looking statements: Except
for the historical information contained herein, the matters
discussed in this statement include forward-looking statements. In
particular, all statements that express forecasts, expectations and
projections with respect to future matters, including trends in
results of operations, margins, growth rates, overall market
trends, the impact of interest or exchange rates, the availability
of financing, anticipated cost savings and synergies and the
execution of Pearson's strategy, are forward-looking statements. By
their nature, forward-looking statements involve risks and
uncertainties because they relate to events and depend on
circumstances that will occur in future. They are based on numerous
assumptions regarding Pearson's present and future business
strategies and the environment in which it will operate in the
future. There are a number of factors which could cause actual
results and developments to differ materially from those expressed
or implied by these forward-looking factors set out in Pearson's
latest annual report and accounts, which can be found on its
website (www.pearsonplc.com).
Any forward-looking statements speak only as of the date they are
made, and Pearson gives no undertaking to update forward-looking
statements to reflect any changes in its expectations with regard
thereto or any changes to events, conditions or circumstances on
which any such statement is based. Readers are cautioned not to
place undue reliance on such forward-looking
statements.
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
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PEARSON
plc
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Date: 23
March 2023
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By: /s/
NATALIE WHITE
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------------------------------------
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Natalie
White
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Deputy
Company Secretary
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