TRANSACTION STATUS
🟢 DEAL COMPLETED: Educational Testing Service acquired ACT, Inc. (June 30, 2026) - Press Release
INDUSTRY
Standardized Testing and Educational Assessment
OVERVIEW
Educational Testing Service (“ETS”) and ACT, Inc. are both leading organizations in the U.S. educational assessment landscape. ETS, a global nonprofit dedicated to advancing the science of measurement—including assessments like the TOEFL®, GRE®, and Praxis®—acquired ACT, Inc., a for-profit entity known for the ACT test and a broad portfolio including ACT WorkKeys and pre-professional assessments (ets.org). The acquisition, announced on June 30, 2026, unites two mission-driven organizations under ETS leadership, aiming to expand educational and career readiness solutions across K–12, higher education, and workforce development (ets.org).
PRODUCTS/SERVICES
Educational Testing Service
- TOEFL® (English language proficiency test)
- GRE® (graduate school admissions test)
- Praxis® (educator certification test)
- TOEIC® (workplace English assessment)
ACT, Inc.
- ACT standardized college readiness test
- ACT WorkKeys (workforce readiness assessment)
- ACT Academy, Aspire, CollegeReady, Online Prep, PreACT and PreACT 8/9, ACT Tessera, National Career Readiness Certificate
CUSTOMERS
Educational Testing Service
- Higher education institutions (graduate and undergraduate programs)
- Educators and certification boards
- Employers and workforce development agencies
ACT, Inc.
- High school students preparing for college
- K–12 schools and districts
- Employers and job seekers (via WorkKeys and related credentials)
- Higher education institutions
M&A MATRIX TABLE
| Same Customers | Different Customers | |
|---|---|---|
| Same Products/Services | Cell 1 - N/A - Core tests differ; TOEFL/GRE vs ACT | Cell 2 - N/A - No identical tests delivered to same customers |
| Complementary/Adjacent Products/Services | Cell 3 - Tests for similar use cases: readiness and assessment across educational segments | Cell 4 - ACT WorkKeys addresses workforce readiness, adjacent to ETS’ workforce tools |
| Different Products/Services | Cell 5 - N/A - Products are complementary, not identical | Cell 6 - N/A - Both operate in educational measurement space, though differing focus |
Cell 3, Cell 4 – The transaction brings complementary and adjacent testing and assessment tools to overlapping and distinct audiences: both organizations serve educational readiness needs (Cell 3), while ACT’s WorkKeys and career-related services extend ETS’s reach into workforce readiness (Cell 4).
SYNERGIES
- Enhanced breadth of assessment offerings combining academic (e.g., GRE, TOEFL, ACT) and career readiness tools (e.g., WorkKeys).
- Cross-sell opportunities across K–12, higher education, and workforce markets.
- Shared innovation in AI-enabled measurement capabilities and scaling of solutions across all 50 states.
- Leveraging ETS’s measurement research strengths to enhance ACT’s product suite and vice versa.
RISKS
- Integration challenges between the cultures of a nonprofit (ETS) and a for-profit company (ACT, Inc.).
- Potential regulatory scrutiny over consolidation of testing power in education.
- Risk of service disruption or customer confusion during product integration.
- Brand alignment risks, as ACT customers may perceive changes in mission or independence post-acquisition.
STRATEGIC THOUGHTS
- This acquisition positions ETS as a unified provider across the full spectrum of readiness—academic, career, and credentialing.
- Strengthens the ability to address evolving educational needs in the AI era through combined innovation.
- Expands ETS’s customer base into K–12 districts and employers more deeply via ACT’s existing relationships.
FINANCIAL ANALYSIS
- Financial details not available