Chrysalis Investments (CHRY) has announced the sale of its entire holding in Cognitive Logic, Inc. (InfoSum) to WPP Plc, generating proceeds of approximately US$63m (£48m). The disposal delivers a 16.4% uplift to the asset’s most recent carrying value as at 31 December 2024, equating to a NAV increase of around 1.23p per share. Importantly, the proceeds will be received in full with no deferrals or escrow arrangements. InfoSum will become part of WPP’s GroupM division, supporting the development of AI-enhanced marketing solutions using its secure data infrastructure platform.
The transaction marks Chrysalis’s third portfolio exit in nine months, bringing the total gross proceeds raised to approximately £184m. These disposals have achieved an average uplift to carrying value of 21.0% and an average money multiple of 1.33x, underscoring the resilience of Chrysalis’s valuation process and the strategic appeal of its holdings.
Liquidity position strengthens materially
As at 31 March 2025, Chrysalis reported gross liquidity of around £116m (£46m net of loan balances). Following the InfoSum proceeds, gross and net liquidity are expected to increase to £164m and £94m respectively. The gross total includes a residual £2.8m position in Wise Plc, with the remainder held in cash and equivalents.
[QD comment MR: This latest exit provides further evidence that Chrysalis is making tangible progress in crystallising value from its portfolio. The full-cash nature of the deal, which has been achieved with a meaningful uplift to NAV, not only underscores the validity of the NAV but also points to the potential latent value sitting in CHRY’s portfolio. In the context of this sale and CHRY’s substantial commitment to returning capital to shareholders, its current discount to NAV – c 42% at the time of writing – looks unjustified. With increased liquidity and a proven ability to realise strategic value, the company is well placed to manage its balance sheet and pursue future opportunities.]
