23andMe CEO Partners on $74.7 Million Buyout Deal

MENLO PARK, Calif. — 23andMe‘s CEO has announced a partnership with New Mountain Capital in a bid to take the genetic testing firm private, valuing the company at approximately $74.7 million. This development was disclosed in a recent filing with the U.S. Securities and Exchange Commission.

The deal marks a significant move for 23andMe, which has been facing challenges in the public market since its SPAC merger in 2021. The partnership with New Mountain Capital, a private equity firm, indicates a strategic shift towards a more controlled ownership structure.

“By going private, we can focus on long-term growth without the pressures of quarter-to-quarter performance,” said 23andMe CEO Anne Wojcicki in a statement. “This partnership will enable us to innovate further in the genetic testing space and improve our services.”

Under the proposed terms, existing shareholders would receive a cash payout based on the equity valuation. This approach aims to streamline operations and enhance value for the remaining stakeholders, including those who will retain shares post-transaction.

Since its inception, 23andMe has been a pioneer in direct-to-consumer genetic testing, providing users with insights into ancestry and inherited health risks. Despite its promising start, the company has encountered various challenges, including fluctuating stock prices and increased competition in the genetic testing market.

“We believe that this transition to a private entity will provide the flexibility needed to address market demands and regulatory changes effectively,” said a representative from New Mountain Capital. “We are committed to supporting 23andMe’s growth and service enhancements in the upcoming years.”

The proposal is still subject to approval by 23andMe shareholders and regulatory bodies, marking a significant step in the evolution of the company. Industry analysts will be closely monitoring the situation, reflecting on the implications for the broader sector as more companies reconsider their public trading strategies.