Nonprofit organization ACT, best known for its standardized tests by the same name, is partnering with Nexus Capital Management LP, a Los Angeles-based private equity firm.
“Our partnership with Nexus Capital Management uniquely positions ACT to meet a watershed moment in our nation, as the demand for talent is growing and becoming more diverse,” said ACT CEO Janet Godwin. “The need to prepare learners for success after high school for both college and work has never been higher, nor has the need to ensure that every learner has access to equitable college and career planning resources, guidance, and insights.
“Partnering in this way will complement and amplify ACT’s proven platform of education and work readiness solutions to support the needs of students, educators, and employers alike. We will accelerate our plans to meet the needs of our stakeholders as they navigate an evolving and complex system to develop the essential skills critical for success in a rapidly changing world of work.”
After closing, ACT and Encoura, an education data science and research organization fully owned by ACT, will merge and function as a public benefit corporation under the name and brand of ACT.
The combined entity will be referred to as ACT, and will enhance its standing in education and workforce preparedness, catering to the requirements of all ACT stakeholders through new investments in ACT’s products and personnel. Ms. Godwin will continue guiding ACT as the CEO of the restructured company.
“This partnership will create more pathways to degrees, credentials, and skills acquisition for people at any stage of their lives,” said Daniel A. 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.”
By blending ACT’s assessment systems and workforce solutions with Encoura’s data science and strategic enrollment services, ACT aims to provide comprehensive readiness credentials and facilitate more accurate connections between students, job seekers, higher education institutions, and employers.
According to ACT, the integration will streamline the college application process, enhance talent sourcing for employers, open avenues for upskilling mid- and late-career professionals, assist learners in recognizing their strengths and advising on their application in educational and professional settings, and offer more cohesive and actionable insights to states, districts, families, and learners.
“We are excited to partner with ACT’s leadership team in this next chapter of growth to deliver enhanced capabilities for students, school districts, postsecondary institutions, employers, and government stakeholders,” said Damian J. Giangiacomo, co-founder of Nexus.
Evan Glucoft, Nexus managing director, added, “The new ACT, through its diverse product offering, is well aligned with Nexus’ history of investing in companies focused on helping students succeed.”
The partnership’s earnings will support an ongoing Iowa-based nonprofit headquartered in Iowa City. This nonprofit will run programs, services, and research aimed at improving education and workplace outcomes. It will also maintain an investment in the new public benefit corporation and have direct representation on ACT’s board of directors.
“ACT will always be driven by our mission, and this investment will allow us to accelerate delivery of impact solutions that are core to who we are — and always have been — including expanding access and opportunity for students,” Ms. Godwin said. “As a result of this investment, we will help more students be ready for their postsecondary paths, and help more adults advance in their careers.”
The transaction is subject to customary closing conditions, the news release said.
