ETS Acquires ACT, Consolidating Major Standardized Testing Organizations

Educational nonprofit ETS, owner of the GRE and TOEFL, is acquiring ACT, roughly two years after ACT was taken over by a private equity firm. This acquisition consolidates two testing giants and comes as more colleges are returning to requiring standardized tests for admissions. The deal is expected to close on July 1, 2026.

Context

ETS is a well-established nonprofit organization known for its standardized tests like the GRE and TOEFL. ACT, originally an independent organization, was acquired by a private equity firm two years ago. The recent trend among colleges to require standardized tests again has heightened the relevance of this acquisition.

Why it matters

The acquisition of ACT by ETS is significant as it consolidates two major players in the standardized testing market. This move could influence the future of college admissions, particularly as more institutions are reinstating testing requirements. The consolidation may also impact the availability and diversity of testing options for students.

Implications

This acquisition may lead to fewer choices for students regarding standardized tests, potentially affecting their preparation and performance. Colleges may face pressure to align their admissions processes with the new entity's offerings. Additionally, the consolidation could influence pricing and accessibility of tests, impacting students from diverse backgrounds.

What to watch

As the deal is set to close on July 1, 2026, stakeholders will be monitoring how the integration of these two organizations unfolds. Observers should pay attention to any changes in testing policies or offerings that may arise from this consolidation. The response from colleges regarding standardized testing requirements will also be crucial.