Nonprofit ETS Acquires ACT, Creating Standardized Testing Giant

For the roughly 1.38 million high school students preparing for college admissions this year, the immediate takeaway from the latest industry shakeup is stability: your scheduled test dates, scoring rubrics, and preparation materials remain exactly the same. There is no need to discard study guides or alter testing strategies. But behind the scenes, the infrastructure of American standardized testing has just undergone a massive consolidation that will shape the future of educational measurement. The landscape of how students prove their readiness for both higher education and the workforce is shifting, driven by a demand for better technology and broader skill assessments.[2]

On June 30, 2026, the Educational Testing Service (ETS)—the nonprofit powerhouse internationally recognized for administering the GRE and TOEFL exams—announced its acquisition of ACT. The deal merges two of the most influential measurement organizations in the country, creating an unprecedented testing giant. Combined, the new entity will reach an estimated 35 million individuals annually across various stages of their educational and professional journeys. While the financial terms of the acquisition were not publicly disclosed, the move immediately reconfigures the competitive dynamics of the assessment industry, bringing vast resources to the ACT brand.[1]

The acquisition ends a brief, turbulent chapter for ACT's corporate structure. In April 2024, the previously nonprofit organization was purchased by Nexus Capital Management, a Los Angeles-based private equity firm. That transaction converted the college admissions assessment provider into a for-profit public benefit corporation, raising questions among educators about the long-term mission of the test. Now, ETS is bringing the core ACT assessment and its workforce credentialing programs under its nonprofit umbrella. Although ACT will continue to operate as a standalone entity in the near term, the transition back to a mission-driven parent organization marks a significant pivot.[1][2]

This consolidation arrives at a pivotal moment for educational measurement. Following the pandemic-era surge in test-optional admissions policies, standardized testing is experiencing a robust resurgence. Major institutions, including the entire Ivy League and several flagship public universities, have reinstated SAT or ACT requirements for the 2027 admissions cycle. University leaders have increasingly cited internal data showing the predictive value of test scores for college success and graduation rates. As demand for reliable standardized metrics returns, ETS's acquisition positions the organization to capitalize on a stabilizing market.[1][5]

For decades, ETS administered the SAT on behalf of the College Board, acting as ACT's primary rival in the high school testing arena. That historic relationship ended in 2024, leaving ETS without a flagship undergraduate admissions exam in its portfolio. By acquiring ACT, ETS instantly reclaims a central role in the high school-to-college pipeline. The move positions ETS to compete directly and aggressively with the College Board's newly digitized SAT, ensuring that the college admissions landscape remains a two-player market, albeit with shifted alliances.[1][2]

However, ETS leadership emphasizes that the acquisition is not solely focused on the traditional college admissions race. A critical component of the deal is ACT's WorkKeys, a comprehensive career-readiness assessment system. Used by employers and educators across all 50 states, WorkKeys evaluates foundational workplace skills and awards the National Career Readiness Certificate. For ETS, acquiring this established workforce credentialing infrastructure was a primary driver of the merger, reflecting a broader shift in how educational success is defined.[2][4]

“Every student deserves a strong education, a fair shot at college, and a path to a good job,” stated ETS CEO Amit Sevak following the announcement. By integrating WorkKeys with ETS's global portfolio, the combined organization aims to bridge the persistent gap between K-12 education and the labor market. This is particularly vital for students pursuing technical, vocational, or direct-to-workforce pathways rather than traditional four-year degrees, offering them a standardized way to prove their competency to employers.[3][4]

The merger also targets the rapidly shifting demands of an AI-driven economy. As artificial intelligence reshapes entry-level employment and automates routine tasks, employers are increasingly demanding verified credentials for both technical proficiency and complex soft skills. ETS plans to leverage ACT's extensive footprint in state education systems to scale these workforce assessments nationwide. The organization has set an ambitious public goal of readying 100 million people for the next generation of jobs, a target Sevak believes the ACT acquisition will significantly accelerate.[3]

ACT currently holds lucrative contracts with 17 states that use the exam as their official high school accountability assessment, testing virtually all high school juniors in those jurisdictions. For these states and their school districts, the ETS acquisition promises deeper technological resources and stability. ETS has heavily invested in AI-powered test generation, adaptive testing models, and remote proctoring capabilities. Over time, these technological advancements are expected to modernize the ACT testing experience, making it more responsive and secure.[2]

ACT has already begun its own modernization efforts to keep pace with industry trends. In April 2025, the organization launched a shortened, digital version of its exam to compete directly with the digital SAT, offering students more flexibility and faster score reporting. With ETS's financial backing and deep measurement expertise, ACT is expected to accelerate its rollout of digital testing sites and enhance its data analytics tools, providing educators with more granular insights into student performance.[6]

Despite the optimism surrounding the merger, several structural questions remain unanswered. ETS has not disclosed the financial terms of the acquisition, nor has it clarified the long-term legal status of ACT, which currently remains a for-profit subsidiary under the ETS umbrella. Furthermore, ACT's enrollment management and data science division, Encoura, was not included in the ETS deal and remains under the ownership of Nexus Capital Management, splitting ACT's historical portfolio.[1]

For educators, counselors, and families, the immediate future requires no strategic pivot. Students should continue preparing for the ACT format they know, utilizing existing resources and timelines. But over the next few years, the ETS-ACT merger is poised to reshape how skills are measured across the country. By combining college admissions testing with robust workforce credentialing, the new testing giant could eventually elevate career-readiness certificates to the same level of cultural and economic importance as traditional college entrance scores.[3][6]