Portfolio Update

Chrysalis Investments Limited

01 June 2023

 

The information contained in this announcement is restricted and is not for publication, release or distribution in the United States of America, any member state of the European Economic Area (other than to professional investors in Belgium, Denmark, the Republic of Ireland, Luxembourg, the Netherlands, Norway and Sweden), Canada, Australia, Japan or the Republic of South Africa.

01 June 2023

Chrysalis Investments Limited ("Chrysalis" or the "Company")

Portfolio Update

The Company notes the announcement made earlier today by The Brandtech Group ("Brandtech") that Brandtech has now completed the acquisition of Jellyfish, the leading global digital media and marketing group. The deal creates the number one digital-only marketing group in the world with over $1bn in revenue, over 7,000 employees, working for eight out of ten of the world's largest advertisers, and 49 of the top 100.

The announcement by Brandtech follows a period of exclusive negotiations which were first announced by Brandtech in August last year. The acquisition further establishes Brandtech as the key partner to global brands, able to help them connect content, data, and media at vast scale, using technology and AI.

Jellyfish was founded in 2005 by Rob Pierre and now has more than 2,000 employees across 38 offices around the world. It joins Brandtech after its most profitable year yet. Jellyfish is a global partner in digital and performance marketing to some of the world's leading brands such as Google, Netflix, and Uber. It is one of the most globally certified companies across today's platforms including Google Marketing Platform, Google Cloud, Salesforce, Snap, Amazon, Facebook and other major social platforms.

Jellyfish joins the group after a period of four years during which Brandtech has significantly outperformed not only the legacy ad holding companies but also the technology platforms, with annual organic revenue growth at an average of more than 30 percent over the four-year period. Brandtech is also one of CB Insights' Most Valuable Private Unicorns and was named one of Fast Company's World's Most Innovative Companies.

This is Brandtech's ninth acquisition and comes after its July 2022 deal to acquire Acorn-i, the global AI-driven e-commerce SaaS platform and Advanced Amazon Partner, and it solidifies the Group's position as the next-generation partner for next-generation marketers.

As reported on 4 May 2023, Brandtech comprises 12.2% of the Company's portfolio as of 31 March 2023. 

Nick Williamson & Richard Watts (co-portfolio managers) comment:

"We are delighted that Brandtech has been able to complete the acquisition of Jellyfish which significantly boosts the scale and profitability of the group. Chrysalis aims to identify companies that can establish a market leading position in fast growing markets and this latest acquisition creates the number 1 digital only marketing group globally with over $1bn of revenues.

Brandtech has significantly outperformed legacy holding companies in this space since we made our initial investment in September 2020 and has generated an average of 30% revenue growth per annum over the last four years. We are very excited about the prospects for the group."

David Jones, Founder and CEO of Brandtech comment:

"Marketing gets ever more complicated, and our clients come to us for one thing: to help simplify this very complex world. When I created the company, we set out to be the best in the world at helping clients connect content, data and media using technology and bringing Jellyfish into the Group allows us to take this to the next level.

Both Brandtech and Jellyfish are industry disruptors at global scale, both built on founder energy, and both are obsessive about solving our clients biggest marketing challenges. And we also share the belief that technology is the key to doing this. I'm obviously excited about bringing them into the group but even more excited for what we are now going to be able to deliver for our clients".

-ENDS-

For further information, please contact Media Montfort Communications Charlotte McMullen / Toto Reissland / Lesley Kezhu Wang	[phone] [e-mail]
Jupiter Asset Management: James Simpson	[phone]
Liberum: Chris Clarke / Darren Vickers / Owen Matthews	[phone]
Numis: Nathan Brown / Matt Goss	[phone]
Maitland Administration (Guernsey) Limited: Chris Bougourd	[phone]

LEI: 213800F9SQ753JQHSW24

A copy of this announcement will be available on the Company's website at https://www.chrysalisinvestments.co.uk

The information contained in this announcement regarding the Company's investments has been provided by the relevant underlying portfolio company and has not been independently verified by the Company. The information contained herein is unaudited.

This announcement is for information purposes only and is not an offer to invest. All investments are subject to risk. Past performance is no guarantee of future returns. Prospective investors are advised to seek expert legal, financial, tax and other professional advice before making any investment decision. The value of investments may fluctuate. Results achieved in the past are no guarantee of future results. Neither the content of the Company's website, nor the content on any website accessible from hyperlinks on its website for any other website, is incorporated into, or forms part of, this announcement nor, unless previously published by means of a recognised information service, should any such content be relied upon in reaching a decision as to whether or not to acquire, continue to hold, or dispose of, securities in the Company.

 

END