15 Sep 2020 08:58
The information contained in this announcement is restricted and is not for publication, release or distribution in the United States of America, any member state of the European Economic Area (other than the Republic of Ireland), Canada, Australia, Japan or the Republic of South Africa.
15 September 2020
Merian Chrysalis Investment Company Limited (the "Company" or "Merian Chrysalis")
Confirmation of Recent Follow-On
- Confirmation of Klarna Holding AB follow-on investment
- Update on cash position
Klarna Holding AB follow-on investment
On 11 September 2020 Merian Chrysalis announced a circa £23 million follow-on investment in an unspecified portfolio holding at a materially higher valuation than that as of the June 2020 net asset value calculation. Today, the Company confirms that the asset referred to in that announcement is Klarna Holding AB ("Klarna"), which conducted a $650 million primary funding round with additional secondary sell down by some investors.
The new round saw significant interest from a wide range of new investors and has seen leading technology investor Silver Lake join the shareholder register. In addition, there was strong support from the existing shareholder base.
The round values Klarna at $10.65 billion, post money. This represents a material increase compared with the valuation of $5.5 billion achieved in August 2019, reflecting the business's strong growth over the last year - volume and revenue in the first half of 2020 were up 44% and 36% respectively, compared with the prior year - and encouraging prospects in its new markets. As a result, the business is now the highest-valued private fintech in Europe. The proceeds of the latest funding round will enable Klarna to invest in product development, geographic expansion and accelerate growth, particularly in the US, which is already performing very strongly.
Cash Position
As a result of the follow-on investment in Klarna, the Company's gross cash position is approximately £31 million and the value of its stake in Klarna is approximately £96 million, assuming the recent valuation round pricing is applied to the entire position and calculated using current exchange rates.
Richard Watts, co-portfolio manager comments:
"Klarna has been a driving force in revolutionising the online shopping and payments market. The company has seen a significant increase in usage during the coronavirus pandemic and the US in particular has seen a step change as consumer numbers have grown more than six-fold year on year. Klarna's expansion continues to gain pace and we're delighted to have the opportunity to increase our stake in the business, providing further support as it enters the next stage of growth."
Nick Williamson, co-portfolio manager adds:
"Klarna's continued strong growth and innovation is cementing its position as a leading global fintech. In our experience, market leaders are typically able to command superior economics and in turn are sought out by investors. As a result, access to this type of investment, particularly for retail investors, is extremely difficult, and we are proud that our proposition has allowed our shareholders to benefit from the material uplift in Klarna's valuation over the last year."
-ENDS-
For further information, please contact:
Merian Global Investors: Amelie Shepherd
|
+44 (0) 20 3817 1000
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Liberum: Gillian Martin / Owen Matthews
| +44 (0) 20 3100 2000 |
Maitland Administration (Guernsey) Limited: Elaine Smeja | +44 (0) 1481 749 364 |
LEI: 213800F9SQ753JQHSW24
A copy of this announcement will be available on the Company's website at https://www.merian.com/chrysalis/.
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.