23 andMe to buy Lemonaid Health for $400 million

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23 andMe to buy Lemonaid Health for $400 million

Oct 22 Reuters - Direct-to-consumer DNA testing firm 23 andMe Holding Co said on Friday it would buy privately held company Lemonaid Health Inc for $400 million in a cash and stock deal, as it looks to expand into telemedicine.

Lemonaid Health offers patients direct online access for a number of common conditions, from consultation to treatment. It also offers free and fast delivery of prescription medications.

By starting with genetics as the foundation, we will give patients and healthcare providers better information about health risks and treatment, 23 andMe Chief Executive Officer Anne Wojcicki said in a statement.

Sunnyvale, California-based 23 andMe is known for its genetic ancestry tests but also aims to develop treatments for diseases such as cancer and respiratory disorders.

The company said it would pay 25% of the total deal value in shares and the rest in cash.

The deal is expected to close by the end of 2021.

23 andMe went public in February through a blank-check firm, backed by Virgin Group founder Richard Branson, in a deal valued the merged entity at $3.5 billion.