By Kate Holton

LONDON (Reuters), – Pearson, the education group has bought Credly, a certification company that helps businesses train and keep workers in a world of shrinking labour markets and technological advancements.

Global learning firm Pearson announced Monday that it has agreed to acquire Credly, a company valued at $200 million. It is the latest response to rising demand for IT-related workforce training. Pearson owned 20%.

As Credly becomes part of its Workforce Skills division it will add around 1000 enterprises to the UK-listed business, which is a leading supplier of assessment and courseware in educational institutions in Britain and America.

Andy Bird, Pearson’s CEO, told Reuters verified credentials became more important with technology changing. Many companies now have a skill gap and need to train staff on processes like artificial Intelligence.

He said, “Showing off the world with this digital resume.. which credentials can make you either a better worker or more employable.”

Pearson has suffered from the transition to digital courseware and online learning. In 2021 Faethm, an AI and analytics company, was acquired by Pearson. Faethm identifies skill gaps for organizations.

With organizations such as IBM Microsoft (NASDAQ;), Amazon (NASDAQ:); Web Services provides digital certificates to both employees and customers who are certified. The platform is based in America but half the users who earn credentials are from outside the country, making India the largest market.

Pearson can now combine Faethm’s diagnostic tools with its digital learning programs and Credly certifications to provide a complete service for companies.

Jonathan Finkelstein is the founder and CEO at Credly. He said that although the demand for certification and training has been increasing for many years, it was accelerated by the pandemic. The process helps to attract and retain workers.

The platform is used by more than 2000 organisations. It has also issued over 50 million credentials to nearly 25 million users. In 2021, its revenue rose 47% and reached $13.3 million. Cash and liquidity will finance the deal.