Daily Mail-owner DMGT sells energy data business for $364m
Daily-Mail owner DMGT said today it has agreed to sell its energy information business in a $364m (£297m) deal.
DMGT said it had agreed to sell Genscape to Nasdaq-listed data analytics provider Verisk.
Genscape will become part of Verisk’s Wood Mackenzie business which focuses on short-term energy data and analytics.
DMGT said it expected the sale to complete in the coming weeks, subject to the completion of closing conditions.
Read more: Daily Mail shares jump following Euromoney shareholder giveaway
DMGT chief executive Paul Zwillenberg said: “This transaction marks another major milestone in DMGT’s continued transformation and is in line with our strategy. It will further increase the focus of the portfolio and will result in DMGT operating in five sectors, compared to ten in 2016.
“Significant progress has been made improving operational execution at Genscape, consistent with our strategic priorities and, on completion, DMGT is expected to have more than £200m net cash on its balance sheet, enhancing the Group’s financial flexibility.”
Genscape provides market intelligence for the commodity and energy sectors.
Read more: Shares in Daily Mail owner jump on profit boost as streamlining strategy pays off
DMGT said the company operates the world’s largest private network of in-field monitors for collecting energy data and said it aims to improve market transparency and efficiency.
Investment bank Centerview Partners is advising DMGT on the sale.
In March, DMGT returned its 49 per cent stake in business media group Euromoney, along with £200m in cash, to certain DMGT shareholders.
DGMT said the redistribution of shares will increase its portfolio focus and allow its management to spend more time on its core business.