Major Shake-Up in Standardized Testing Industry: ACT Acquired by Nexus Capital Management
The standardized testing industry is undergoing a major shake-up as the nonprofit organization ACT has been purchased by the private equity firm Nexus Capital Management. This acquisition will transition ACT into a for-profit company, raising concerns about transparency and accountability in the testing industry.
Janet Godwin, ACT’s CEO, reassured the public that despite the change in ownership, the spirit of the test and the trust associated with the ACT brand will remain unchanged. The partnership with Nexus opens up new opportunities for ACT to expand into areas such as credential programs and K-12 curriculum development.
The acquisition comes at a time when the traditional testing industry has been disrupted by the Covid-19 pandemic and the normalization of test-optional policies in college admissions. ACT’s move to partner with Nexus reflects a broader trend in the industry towards adapting to changing educational landscapes.
While some, like David Coleman, CEO of the College Board, ACT’s largest competitor, see the acquisition as a sign of the need for innovation in the testing industry, others, like sociology professor Charlie Eaton, express concerns about the potential for exploitation in the credential space by private equity firms.
Despite these concerns, Godwin believes that Nexus is the right partner to help ACT achieve its goals of expanding into new areas and remaining true to its educational mission. The acquisition will also see ACT become a public benefit corporation, combining corporate structure with accountability and transparency requirements.
As the testing industry faces challenges and changes, the acquisition of ACT by Nexus Capital Management signals a new chapter for standardized testing and assessment organizations. The future of the industry remains uncertain, but one thing is clear: the landscape of college admissions and educational assessment is evolving rapidly, and organizations like ACT are adapting to meet the changing needs of students and educators.