23andMe Is Latest Private Company To Go Public In $3.5BN Deal With Branson SPAC

It looks like 23andMe could soon become the latest big-name company to go public via SPAC, as the popular consumer-genetics firm announced plans to go public via a SPAC controlled by Virgin Galactic founder Sir Richard Branson. The deal is expected to have an enterprise value of $3.5BN.

According to STAT News, the transaction with VG Acquisition will provide a burst of capital to 23andMe as it seeks to expand its business beyond direct-to-consumer genetic testing to develop novel therapeutics. As the company’s CEO reminded viewers in an interview on CNBC Thursday, 23andMe recently struck a partnership with the drug giant GlaxoSmithKline to discover new drugs using data culled from millions of the company’s customers.

Though the company is already widely visible, the backing of Virgin Group founder Branson will give it a boost of billions in capital, along with the backing of a major investor to use on the marketing materials. The involvement of big-name investors like Branson associate Chamath Palihapitiya and hedge fund giant Bill Ackman has become a routine feature of these types of deals.