23andMe’s CEO, Anne Wojcicki, alongside New Mountain Capital, has submitted a proposal to take the struggling genetic testing company private. According to a recent filing with the U.S. Securities and Exchange Commission, the offer values 23andMe at approximately $74.7 million, with a cash offer of $2.53 per share for all outstanding shares. This proposal comes shortly after the company’s stock closed at $2.42, reflecting a market cap of around $65 million.
This acquisition proposal follows a challenging period for 23andMe, which saw its stock plunge by over 80% in 2024. In response to this financial downturn, the company announced in January that it would explore strategic alternatives, including the potential sale of the company or its assets, a business merger, or a significant restructuring. A special committee, made up of independent directors, has been established to evaluate these possible solutions. In October, three new independent directors joined the board after all seven of the previous members resigned unexpectedly the month before. Any offer, including the latest proposal from Wojcicki and New Mountain Capital, must receive approval from this committee.
In a letter to the special committee, Wojcicki and Matthew Holt, managing director and president of private equity at New Mountain Capital, emphasized that the proposal offers “compelling value and immediate liquidity” for the company’s public shareholders. This is not the first attempt by Wojcicki to take the company private. A prior offer made in July proposed a price of 40 cents per share but was rejected by the special committee. The rejection was due to concerns over the absence of committed financing and the lack of a premium over the closing price at that time.
The latest filing indicates that Wojcicki and New Mountain are prepared to provide secured debt financing to support the company’s operations until the transaction is finalized. New Mountain Capital, headquartered in New York, manages assets worth approximately $55 billion. The outcome of this latest proposal will depend on the evaluation and approval of the special committee, which will determine whether the deal serves the best interests of 23andMe’s shareholders.
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