Under the agreement, investors will receive 0.1476 of a Vermilion share for each Spartan share they hold.
The offer implies a value of $6.50 per Spartan share, based on Vermilion’s closing share price Friday of $44.04. Spartan shares closed at $6.19 on Friday.
The companies said the deal values Spartan at $1.4 billion after accounting for assumed debt and transaction costs.
Calgary-based Spartan has operations in central Alberta and in southeast Saskatchewan.
Its current production is approximately 23,000 barrels of oil equivalent per day and its proven plus probable reserves as of Dec. 31, 2017, were 113.5 million barrels of oil equivalent.