Translation:He has tested you and he is satisfied with you.
Ok, so because this has understandably received some criticism, I thought I would explain what I meant when I wrote that. In English you generally have the word order subject - verb - object. In German however, you don't have to use the subject - verb - object word order. In German the rule is: The verb in the main clause is always in the second position. Therefore correct translations would be:
... und er ist zufrieden mit dir.
... und mit dir ist er zufrieden.
... und er ist mit dir zufrieden.
... und zufrieden ist er mit dir.
If you are using an auxiliary verb (e.g. in future tense: werde ... sein), the auxiliary verb goes into second position while the (main) verb is placed at the end of the clause. In subordinate clauses the verb (and the auxiliary verb) are placed at the end of the clause.
You can find additional rules and examples here: http://www.learn-german-language-online.com/german-word-order.html
This website has a really in depth explanation of how word order works in German: https://www.dartmouth.edu/~deutsch/Grammatik/WordOrder/WordOrder.html
No, it's fine the way it is. Both parts of the sentence ("er hat dich geprüft" and "er ist zufrieden mit dir") have nothing in them that would cause the "ist" to be at the end and "und" doesn't change that. If the sentence used a subordinating conjunction (one that makes verbs move to the end), it would though: "Er hat gesagt, dass er mit dir zufrieden ist."
That would have to be something like "Er hat es dir bewiesen, dass er mit dir zufrieden ist." The original German sentence doesn't have "that" in it like your translation does, "prüfen" doesn't mean "to prove," and even if it did, the original sentence has "dich" and not "dir" which would be needed for your translation.