31st Jan 2022 08:43
(Alliance News) - Pearson PLC said on Monday that it has wholly acquired workforce skills company Credly for a total value of USD200 million.
The London-based publishing and education company currently holds a 20% stake in Credly.
The purchase price, including Pearson's existing stake, represents a total value of USD200 million. The company explained that this will be funded from its existing cash and available liquidity.
This comprises a total upfront consideration of USD140 million, Pearson's existing stake valued at USD40 million and a deferred consideration.
Pearson said the acquisition expands its digital footprint, accelerates the company's growth and comes at a time of "increasing demand" for digital credentials, with the company valuing the market at USD400 billion.
Credly offers a platform for organisations, companies and educational institutions to award digital credentials and certifications that verify an individual's skills.
In 2021, Credly's revenue grew 47% year-on-year to USD13.3 million. Pearson added that Credly has delivered compound annual growth rate revenue growth of 42% from 2019 to 2021.
Chief Executive Andy Bird said: "The Credly acquisition is another important step in accelerating our strategy in the workforce skills market and in building connectivity across the entire Pearson portfolio.
"We originally invested in Credly in 2018 because we recognized its potential and have been impressed with the strong management team and their deep understanding of the talent market. Credly complements our other recent acquisition - Faethm - to address the full learner journey, enabling us to work with employers and employees to identify skills needs, provide learning to address those needs and offer trusted credentialing to prove proficiency."
Faethm is a workforce artificial intelligence and predictive analytics company.
Shares in Pearson were up 0.5% at 609.40 pence on Monday morning in London.
By Heather Rydings; [email protected]
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