Testing service acquisition expands Virginia’s workforce credentialing and policy plans

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Educational Testing Services, a leading test developer for colleges and universities, recently acquired ACT, the organization that administers one of the nation’s most popular standardized tests to measure students educational development for college admission. 

The merger will combine both entities’ expertise to create better tools to help students in Virginia and across the country succeed in school, college and their careers.

Following EST losing its contract to administer the SAT, the merger hopes to also meet the need for skills-based credentialing at a time when participation rates in the SAT and ACT have remained flat over the past several years largely due to some institutions relaxing their admissions policies.

In Virginia, more students take the SAT than the ACT assessment.

“Every student deserves a strong education, a fair shot at college, and a path to a good job,” said Amit Sevak, CEO of ETS, in a statement. “Together with ACT, we’re determined to serve students and parents along with educators and states by expanding access to education and job opportunities across America.”

The announcement comes as Virginia schools are experimenting with broader evaluation metrics, including college- and career-readiness, soft skills and workforce assessments, and non-test credentialing systems, aligning with ETS and ACT’s focus on skills-based and workforce credentialing.

Virginia’s workforce pipeline also aligns with ACT’s non-college products, such as ACT WorkKeys, a job-readiness certification program.

The commonwealth also has a strong policy interest in workforce credentialing, community college-to-work pathways, and employer-aligned skills systems, reinforcing the local relevance of the ETS-ACT acquisition.

Recently, Gov. Abigail Spanberger signed into law legislation allowing 16- and 17-year olds to participate in certain work programs if they are enrolled in registered apprenticeships or state-approved training programs, or hold required certifications or licenses.

The new state budget also includes funding for workforce development programs including $2 million to operate a scholarship program to increase the skills of Virginia’s early education workforce and $1.4 million to support career and technical education student organizations.

Steve Tapp, CEO of ACT, said in a statement that joining ETS will allow ACT to build on what they’ve already developed and expand it as part of a broader plan focused on better preparing people.

“Joining ETS gives us the platform to fulfill our mission at a scale we couldn’t reach alone,” Tapp said. “This is about more students getting the guidance they deserve, and more of them finding their way forward with confidence.”

ETS said ACT customers and partners will see no disruption to the products or services they rely on today. The company says ACT will have immediate access to ETS’s expertise in measurement, innovation and other capabilities.

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