Dive Brief:
- Texas has ended its 15-year relationship with test provider Pearson Education and entered a four-year, $280 million contract with New Jersey's Education Testing Services (ETS).
- The move is predicted to lessen Pearson's sphere of influence and sales, given how much Texas spent and how lucrative standardized tests are.
- The decision to drop the London-based Pearson comes on the heels of mounting pressure from parents and teachers to reduce the amount of time and energy dedicated to high-stakes testing.
Dive Insight:
According to the Texas Education Agency, in the last 15 years, Pearson has recieved $1.18 billion to administer tests. A five-year deal worth $468 million for state exams runs through this year. Pearson is very likely to negotiate a $60 million deal over the next four years with Texas to develop a test for English Language Learners.
Pearson, which creates everything from tests to curriculum and textbooks, has been accused of having an "unhealthy monopoly on testing and other educational contracts," not just in Texas but across the nation. In California, the SEC's LAUSD iPad probe also involved Pearson and possible conflicts of interest.