MEG picks up 70% stake in MeritTrac

Bangalore, May 29 | Updated: May 30 2007, 05:50am hrs
Manipal Education Group (MEG) has picked up over 70% stake in Bangalore-based skills assessment and testing company MeritTrac from its existing investors HAV2 (Mauritius). MeritTrac has been valued at around Rs 75 crore and the buyout has cost MEG around Rs 50 crore.

With the acquisition, MEG will merge its Pariksha Online Assessment & Testing with MeritTrac and it will operate as an independent entity - MeritTrac - with 450 employees. The combined entity would have executed over 20 lakh tests and would focus on India and abroad.

With the assessment/ testing market growing tremendously over the past few years and the future being bright, MeritTrac's focus will now be on expanding its range of offerings across both the corporate and education segments, expanding its retail offerings, as well as entering newer segments like medical sciences.

"We have always believed that assessments service is a key link in the entire education value-chain and hence we see this investment in MeritTrac as a way forward to consolidate the overall leadership position in the market. We both have been innovative in our approach in this sector and we also see synergies accruing through this move," Manipal Education CEO and managing director Anand Sudarshan said.

"Between MeritTrac and Pariksha there are tremendous complementarities, which will lead to significant achievements and result in creating a much larger platform for meeting the demands of the fast-growing assessments and testing market. We will also be able to leverage on MEG's existing network operations across India and globally," MeritTrac co-founder and director Madan Padaki said.