TORONTO - Postmedia Network Canada Corp. (PNCa.TO) has signed a deal to sell Infomart, its media monitoring division, to Meltwater News Canada Inc. for $38.25 million.

The cash-strapped media company says net proceeds from the sale will be used to repay debt.

The arrangement includes Infomart's media monitoring business, direct feed business and professional services operations.

Meltwater provides companies with online media intelligence and helps them analyze and use the information.

The deal, which is subject to certain conditions, is expected to close on or about Aug. 15.

Postmedia, one of Canada's largest news media companies, has more than 200 brands across multiple print, online and mobile platforms including the National Post.