EXCLUSIVE Pearson to buy $200 million certification group Credly

The company logo is displayed outside Pearson’s offices in London, Britain, August 4, 2017. REUTERS/Neil Hall

LONDON, Jan 31 (Reuters) – Education group Pearson has agreed to buy certification company Credly to broaden its offering to companies looking to train and retain workers in an age of tight labor markets and rapid technological innovation.

The global learning company said Monday it had agreed to buy Credly in a $200 million deal to respond to demand for employee training in areas like IT. Pearson already owned 20%.

The UK-listed company, a major provider of courseware and assessments to schools and colleges in the United States, the United Kingdom and around the world, will have approximately 1,000 enterprise customers when it adds Credly to its workforce skills division.

Pearson CEO Andy Bird told Reuters that verified credentials are becoming increasingly important as technology adapts, and many companies have a skills gap where employees need to be trained to use processes such as artificial intelligence.

“By showing the world this new form of digital resumes…what skills you have can ultimately make you either a better employee or more employable,” he said.

Pearson, battered by the shift from physical courseware to online learning, bought AI and analytics group Faethm, which uncovers skills gaps for organizations, in 2021.

Credly works with organizations like IBM, Microsoft, and Amazon Web Services to provide certification or digital credentials to employees inside and outside their organizations who have achieved a certain level with their product. Half of the United States residents who purchase credentials on the platform are outside of the Americas, with India being one of the largest markets.

Pearson will now be able to combine Faethm’s diagnostic tools with its own digital learning programs and Credly’s certification capabilities to offer companies a comprehensive service.

Jonathan Finkelstein, founder and CEO of Credly, said demand for training and certification has been growing for several years but has been accelerated by the pandemic and the process is now helping to retain and attract workers.

More than 2,000 organizations use the platform and it has issued more than 50 million credentials to 25 million people. Revenue in 2021 grew 47% to $13.3 million. The transaction will be funded by cash and available liquidity.

Adaptation by Toby Chopra

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