One of Canada’s largest newspaper publishers is parting ways with a prime source of data and intelligence for the country’s struggling energy sector.
Vancouver-based Glacier Media Inc. (TSX:GVC) announced Tuesday affiliate GVIC Communications Corp. (GVIC) has agreed to sell JWN Energy to geoLOGIC Systems Ltd. in a deal worth up to $8 million.
The sale will see $4.5 million in cash flow to GVIC's coffers at the close of the deal — expected Friday — in addition to an earnout of up to $3.5 million based on JWN’s future financial performance.
Both JWN and geoLOGIC are based in Calgary, specializing in providing deep data on Canada’s oil and gas sector.
JWN is also known for publishing The Daily Oil Bulletin and is the owner of Rig Locator, POST Report and CanOils.
“The [oil and gas] industry has been significantly challenged and while it is expected to recover to some degree, GVIC determined that this segment of the company’s business would be better served and positioned to realize its potential by combining with geoLOGIC,” Glacier Media said in a statement.
“The upfront capital and potential earnout proceeds can be used to invest in the company’s core growth opportunities.”
Glacier Media added that geoLOGIC is “significantly larger” than JWN and is backed by private equity firm BV Investment Partners LP.
“GeoLOGIC brings synergies to JWN through its data and software products, sales and development resources that can be leveraged to improve JWN’s products and performance, and potentially result in the realization of the earnout proceeds,” Glacier Media stated.
BIV Media LP is a subsidiary of Glacier Media.