A blank check firm, backed by Virgin Group founder Sir Richard Branson, is going public with consumer DNA testing company 23andMe in a deal that values the merged entity at $ 3.5 billion, they said. businesses on Thursday.
As part of the deal with the acquisition of VG, 23andMe will receive revenues of $ 759 million, which includes $ 250 million from a number of investors, including Branson, 23andMe co-founder Anne Wojcicki, funds managed by Fidelity Management & Research Co, Altimeter Capital, Casdin Capital and Capital Foresite.
Billionaire Branson, a serial entrepreneur whose space tourism company Virgin Galactic went public through an agreement with the special purpose acquisition firm (SPAC) of the prolific blank check investor Chamath Palihapitiya in 2019, is the most famous celebrity recent to enter the frenzy of blank check deals.
SPAC, or a blank check firm, is a front company that raises funds in an initial public offering (IPO) in order to acquire a private company, which then becomes public as a result of the merger.
For the company being acquired, the merger is an alternative way to go public on a traditional IPO. SPACs emerged last year as one of the most popular investment vehicles on Wall Street.
NBA Hall of Fame member Shaquille O’Neal, leading politicians, including former US Secretary of Commerce Wilbur Ross, former Republican House Speaker Paul Ryan and hedge fund chiefs Dan Loeb and Bill Ackman as well are looking to close deals through their SPACs.
23andMe, which was co-founded by Wojcicki in 2006, sells genetic testing kits directly to consumers. Over the years, 23andMe has become popular with consumers, and in 2018 it caught the eye of GlaxoSmithKline, which invested $ 300 million in the Silicon Valley company, best known for its saliva-based test kits they offer give users a glimpse of their genetic ancestry.
The merged entity will be traded under the symbol “ME” on the New York Stock Exchange.