ETS to Acquire Questar Assessment Inc.
Jan 27, 2017, 07:15 ET
PRINCETON, N.J., Jan. 27, 2017 /PRNewswire-USNewswire/ -- Educational Testing Service (ETS) today announced that it has signed a definitive agreement to acquire Questar Assessment Inc., a leading K–12 assessment solutions provider focused on building a bridge between learning and accountability. Subject to regulatory approval and customary closing conditions, Questar will become a separate, for-profit subsidiary of ETS.
The acquisition allows both organizations to gain capacity, improve capability, and acquire additional operating resources to better serve clients in the dynamic K–12 marketplace. Current clients of both companies will continue to be seamlessly served.
Questar supplies states with summative assessments for grades 3-8, end of course tests and alternative assessments for students with disabilities. Questar is widely known and respected for its fresh approach to assessment, technical innovations that set the standard for scalability and reliable online testing performance, and for reimagining how assessments can empower educators and better serve students. Nextera®, Questar's end-to-end assessment platform, integrates content management, student-test interface, administration and image-based hand-scoring capabilities.
ETS designs and administers more than 50 million tests a year in 180 countries. Its assessments include the GRE®, TOEFL®, TOEIC®, the U.S. Department of Education's NAEP, and the College Board's SAT® and Advanced Placement® tests. In the K–12 marketplace, ETS administers state contracts, including the State of Texas Assessments of Academic Readiness (STAAR), and the California Assessment of Student Performance and Progress (CAASPP), as well as other state testing programs.
"ETS and Questar are already proven players in serving states, districts, educators, and students across the nation," says ETS President Walt MacDonald. "This deepens our commitment, especially since both our missions of serving education, improving instruction, and fully preparing students for college and careers are so closely aligned."
"When a company grows at the rate Questar has experienced in the past few years, sustaining and expanding upon that success, and our ongoing service commitment to our customers, becomes a key strategic focus," says Jamie Candee, Questar's Chief Executive Officer and President. "When ETS presented us with the opportunity to join together under a common vision, sharing the benefits of our complementary core competencies, we knew we had found a partner that would nurture our growth and propel us to even greater achievements for students."
ETS will acquire Questar for approximately $127.5 million subject to certain adjustments as set forth in the transaction agreement. Holders of Questar common stock are expected to receive approximately $2.80 per share in the transaction.
Barclays is acting as exclusive financial advisor and Jones Day as legal advisor to ETS. BMO Capital Markets is acting as exclusive financial advisor and Vedder Price as legal advisor to Questar.
About ETS
At non-profit ETS, we advance quality and equity in education for people worldwide by creating assessments based on rigorous research. ETS serves individuals, educational institutions and government agencies by providing customized solutions for teacher certification, English language learning, and elementary, secondary and postsecondary education, and by conducting education research, analysis and policy studies. Founded as a nonprofit in 1947, ETS develops, administers and scores more than 50 million tests annually — including the TOEFL® and TOEIC® tests, the GRE® tests and The Praxis Series® assessments — in more than 180 countries, at over 9,000 locations worldwide. www.ets.org.
About Questar Assessment Inc.
Questar Assessment Inc. is a K–12 assessment solutions provider focused on building a bridge between learning and accountability. Our fresh approach to meaningful assessment design, delivery, scoring, analysis, and reporting results in successful collaborations between educators and our high-performing teams and, ultimately, better assessment programs for states, districts, schools, and students. Our technological innovations continue to set the standard for scalability and reliable online testing performance to meet the specific needs of states and districts at an unprecedented value. And as we reimagine how assessments can empower educators by giving them the insights they need to improve instruction and fully prepare students for college or career, we are raising expectations about what it means to be an assessment partner. Questar is based in Minneapolis, Minnesota and can be reached at questarai.com or 800-800-2598.
SOURCE Educational Testing Service
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