“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. 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,” ACT CEO Janet Godwin said. “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.”
“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.”
This is a fine example of the kind of writing that ChatGPT could take over-- lots of word things that don't say much of anything.
As for the "significant industry experience" that Nexus brings to the table--well, let's take a look at some of ACT's new portfolio-mates. The Los Angeles firm also owns chucks of FTD, Dollar Shave Club, Lamps Plus, Sugarbear, TOMS, MediaLab, a chemical company, and some others.
Including Savvas Learning Company, formerly known as Pearson U.S. K12 Education.
Yes, back in 2019, after a year of shopping for a buyer, Pearson sold off its U.S. curriculum and instructional materials business to Nexus Capital for $250 million. It was a hell of a deal for {Pearson, which got 20% of the take from the business going forward, and will get 20% of net sales price should Nexus ever sell the business. "We can't make this business work, but if you do, you have to give us 20% of your success," is a heck of a deal, and may explain why it took a year to find someone to take it.
Nexus changed the company's name and its CEO Bethlam Forsa declared a new tradition of innovation that would include “new digital technologies, diverse classrooms, broad social trends, and new research-based teaching and learning practices that are transforming education as we know it.” Savvas now provides "next-generation learning solutions for students" along with "adaptive technology that delivers personalized instruction," "high-quality instructional materials," and, of course, "The Science of Reading." If nothing else, Savvas is in touch with current buzzwords.
So that's the other edu-business in the Nexus family-- the ghost of Pearson's U.S. aspiration. Will Nexus force some kind of partnership for vertical integration? Who knows. Personally, I'd rather see a partnership like getting a nice spray of flowers and some comfortable shoes when you sign up to take the test. But I expect they'll first have to solve the problem of how ACT can keep doing what it's doing and somehow end up with extra "profit" money.
ACT says the costs of taking the test won't go up. Sure. ACT will be "unified" with its own subsidiary Encoura, so maybe initial profits will be generated by unifying some people right out of a job.
Meanwhile, I can't wait to see the first SAT ads declaring "We're still a non-profit company. We're not trying to make money. Just trying to fund our leaders exorbitant salaries."
No comments:
Post a Comment