23andMe, the popular personal genetic testing company, has recently announced that it is going public via a merger agreement with special purpose acquisition company (SPAC) VG Acquisition Corp. This agreement values 23andMe at $3.5 billion and will provide the company with about $900 million in cash proceeds.
23andMe was founded in 2006 and has since become a leading player in the direct-to-consumer genetic testing market. The company provides customers with personalized genetic reports, including ancestry analysis and health risk assessments. Its services have gained popularity over the years, with millions of people worldwide using 23andMe to learn more about their genetic makeup.
The merger with VG Acquisition Corp. will enable 23andMe to accelerate its growth plans, expand its product offerings, and invest in research and development. As part of the agreement, 23andMe will merge with VG Acquisition Corp. and become a publicly traded company under the ticker symbol “ME” on the New York Stock Exchange.
This move to go public via a SPAC merger is becoming increasingly popular among tech companies looking to raise funds and go public quickly without the traditional initial public offering (IPO) process. The SPAC, in this case, VG Acquisition Corp., is essentially a blank-check company that raises money through an IPO and then merges with a private company, taking it public in the process. This allows the private company to avoid some of the regulatory requirements and time involved in a traditional IPO.
23andMe`s merger with VG Acquisition Corp. is expected to close in the second quarter of 2021, subject to regulatory approval. The company`s co-founder and CEO, Anne Wojcicki, will continue to lead the company following the merger and retain a majority ownership stake.
In conclusion, 23andMe`s merger agreement with VG Acquisition Corp. marks a significant milestone for the company, enabling it to go public and accelerate its growth plans. With the added resources, 23andMe can continue to innovate and expand its offerings, providing customers with even more personalized genetic insights.
