Dive Brief:
- ACT is partnering with Nexus Capital Management LP, a Los Angeles-based private equity firm, in a deal that would see the nonprofit college admissions assessment provider transition to a for-profit company.
- Once finalized, the deal would unify Iowa City, Iowa-based ACT and its subsidiary Encoura, which provides data science and enrollment services, to operate under ACT's name and brand as a public benefit corporation.
- According to ACT, the partnership with Nexus will help ACT bring new products to market to "fulfill unmet needs and provide more value to learners, families, educators, states, districts, and our many stakeholders."
Dive Insight
Specifically, the partnership will open more pathways to degrees, credentials and skills acquisition for people at all stages in their careers and in learning, said Daniel Domenech, chairman of ACT’s board of directors and former executive director of AASA, The School Superintendents Association.
“The time is right to move into the next phase of ACT’s long-term growth strategy alongside a partner with significant industry expertise, giving ACT the scale and capital necessary to deliver on its promise of education and workplace success,” Domenech said in an April 10 statement.
The partnership will have no effect on the price of the ACT test or the experience of taking the assessment for college admissions, ACT said.
Along with its college admissions assessment, ACT also provides learning resources, research and work-ready credentials.
Encoura’s higher education offerings will remain the same, with its brand and tools becoming a suite of products under the ACT brand.ACT CEO Janet Godwin will continue to lead the new public benefit corporation.
ACT said proceeds from the investment will fund a continued nonprofit organization with a role in guiding the new ACT public benefit corporation and ensuring alignment with ACT's mission. The nonprofit will conduct programs, services and research focused on education and workplace success, retain an investment in the new public benefit corporation and have direct representation on ACT’s board of directors.
