January 27, 2017
ETS to Acquire Questar Assessment Inc.
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 Questar Assessment Inc.