The global training company announced on Monday that it had agreed to buy Credly in a deal valued at $200 million, as part of its latest move to address workforce training demand. works in areas such as IT. Pearson already owned 20%.
The UK-listed company, which is a leading provider of courseware and assessments for schools and colleges in the US, Britain and around the world, will have around 1,000 corporate customers when it will add Credly its Workforce Skills division.
Pearson CEO Andy Bird told Reuters that verified credentials are becoming more important as technology adapts, leaving many companies with a skills gap where staff need training on how to work with processes such as artificial intelligence.
“Showing the world, in this new form of digital resume, the credentials you have can ultimately make you a better employee or a more employable person,” he said.
Pearson, which has been rocked by the shift from physical courses to online learning, bought AI and analytics group Faethm in 2021, which identifies skills gaps for organizations.
Credly partners with organizations such as IBM, Microsoft, and Amazon Web Services to provide certifications, or digital credentials, to internal and external workers who have reached a certain level with their product. Based in the United States, half of the people earning credentials on the platform are outside America, with India being one of its main 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 a complete service to businesses.
Jonathan Finkelstein, founder and CEO of Credly, said demand for training and certification has been on the rise for several years, but has been accelerated by the pandemic, with the process now helping to retain and attract workers.
Over 2,000 organizations use the platform and it has issued over 50 million credentials to 25 million people. In 2021, its revenue increased by 47% to $13.3 million. The operation will be financed by available cash and liquidities.