23andMe, Inc., a Sunnyvale, CA-based consumer genetics and research company, and VG Acquisition Corp. (NYSE: VGAC), a special purpose acquisition company sponsored by Virgin Group, entered into a definitive merger agreement.
The business combination values 23andMe at an enterprise value of approximately $3.5 billion.
Upon completion of the deal, estimated in the second calendar quarter of 2021, VGAC will change its New York Stock Exchange (NYSE) ticker symbol, and the combined company’s securities will trade under the ticker symbol “ME”.
Led by Anne Wojcicki, CEO and Co-Founder, 23andMe provides direct-to-consumer genetic testing, giving consumers personalized information about their genetic health risks, ancestry and traits. The company, which has multiple FDA clearances for over-the-counter health and carrier status reports, also offers customers the option to participate in genetic research. This participation, which has helped create a premier re-contactable database for genetic research, enables 23andMe to analyze genotypic and phenotypic data and to discover new genetic insights. These insights surfaces future opportunities across health, therapeutics and other areas. The company has generated a broad pipeline of more than 30 therapeutic programs, spanning oncology, respiratory, cardiovascular diseases and more.
As part of the transaction, 23andMe’s existing equity holders will roll 100% of their equity into the combined company.
The deal is subject to approval by VG Acquisition Corp.’s shareholders and other customary closing conditions. The transaction is expected to close in the second calendar quarter of 2021.