TORONTO--(BUSINESS WIRE)--Postmedia Network Inc., a wholly owned subsidiary of Postmedia Network Canada Corp. (“Postmedia” or “the Company”) today announced a definitive agreement to sell its media monitoring division Infomart to Meltwater News Canada Inc., a global leader in media intelligence, for gross proceeds of $38.25 million, subject to adjustments. An amount equal to 15% of the purchase price will be paid into escrow to satisfy claims arising under the purchase agreement. The net proceeds from the sale will be used for debt repayment.
“We are pleased to announce a transaction that both supports Postmedia’s business strategy and provides an exceptional offering for Infomart clients,” said Andrew MacLeod, Executive Vice President and COO, Postmedia. “The transaction allows us to pay down debt and focus on core areas of the business.”
Included in the transaction are Infomart’s media monitoring business, direct feed business and professional services operations, including clients of such services.
“We look forward to welcoming Infomart employees and clients into the Meltwater family,” said Kaveh Rostampor, Executive Director, Americas, Meltwater. “Infomart’s existing client base will have the opportunity to enjoy the Meltwater product offering while continuing with the services they are used to”.
The deal is subject to the satisfaction or waiver of certain conditions, including the entering into of certain ancillary agreements, the entering into of certain licenses, the receipt of certain consents, and, if applicable, the receipt of regulatory clearance. The purchase price is subject to adjustments, including adjustments relating to certain consents.
The transaction is expected to close on or about August 15, 2017. A copy of the definitive agreement will be made available on SEDAR at www.sedar.com.
Infomart, a division of Postmedia Network Inc. and one of Canada’s leading media consultancies, provides the most complete integrated solutions, including media monitoring and analytics, Research and Insights Reports, Executive Summaries and corporate data to major players in virtually every industry. Helping clients gain a deeper understanding of their brand’s media impact in the news and across social media, Infomart provides the tools and insights they need to manage, measure and improve their media strategies and campaigns. For more information, visit www.infomart.com.
About Postmedia Network Inc.
Postmedia Network Inc., a wholly owned subsidiary of Postmedia Network Canada Corp. (TSX:PNC.A, PNC.B), is a Canadian newsmedia company representing more than 200 brands across multiple print, online, and mobile platforms. Award-winning journalists and innovative product development teams bring engaging content to millions of people every week whenever and wherever they want it. This exceptional content, reach and scope offers advertisers and marketers compelling solutions to effectively reach target audiences. For more information, visit www.postmedia.com.
This news release may include information that is “forward-looking information” under applicable Canadian securities laws. The Company has tried, where possible, to identify such information and statements by using words such as “believe,” “expect,” “intend,” “estimate,” “anticipate,” “may,” “will,” “could,” “would,” “should” and similar expressions and derivations thereof in connection with any discussion of future events, trends or prospects or future operating or financial performance. Forward-looking statements in this news release include statements with respect to the transaction to sell the Infomart division to Meltwater. By their nature, forward-looking information and statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. These risks and uncertainties include, among others: the impact of the transaction on revenue; the possibility that the transaction will not close (including without limitation as a result of the failure to satisfy the closing conditions); the possibility of adjustments in favour of Meltwater which would reduce the proceeds of the transaction received by Postmedia; competition from digital and other forms of media; the effect of economic conditions on advertising revenue; the ability of the Company to build out its digital media and online businesses; the failure to maintain current print and online newspaper readership and circulation levels; the realization of anticipated cost savings; possible damage to the reputation of the Company’s brands or trademarks; possible labour disruptions; possible environmental liabilities, litigation and pension plan obligations; fluctuations in foreign exchange rates and the prices of newsprint and other commodities. For a complete list of our risk factors please refer to the section entitled “Risk Factors” contained in our annual management’s discussion and analysis for the years ended August 31, 2016 and 2015. Although the Company bases such information and statements on assumptions believed to be reasonable when made, they are not guarantees that the closing conditions will be satisfied and the transaction will close or of future performance and actual results of operations, financial condition and liquidity, and developments in the industry in which the Company operates may differ materially from any such information and statements in this press release. Given these risks and uncertainties, undue reliance should not be placed on any forward-looking information or forward-looking statements, which speak only as of the date of such information or statements. Other than as required by law, the Company does not undertake, and specifically declines, any obligation to update such information or statements or to publicly announce the results of any revisions to any such information or statements.