Direct-to-consumer DNA testing company 23andMe entered a merger agreement Feb. 4 with VG Acquisition Corp., venture capital investment company Virgin Group's acquisition arm.
Five notes:
1. The transaction will value 23andMe at about $3.5 billion.
2. 23andMe CEO and co-founder Anne Wojcicki and Sir Richard Branson, the billionaire founder of the Virgin Group, are each investing $25 million into the $250 million private investment in a public equity deal.
3. The merger will fund additional growth investments in 23andMe's consumer health and therapeutics businesses. In December, the company raised nearly $85 million for its corporate initiatives.
4. 23andMe has developed more than 30 therapeutic programs, spanning oncology, respiratory, cardiovascular diseases and more.
5. The transaction is expected to close in the second quarter of this year.