23andMe M&A: Who are the most likely buyers of the company?
Exec Summary
23andMe’s Chapter 11 bankruptcy process is still in its early stages, with the company initiating a court supervised sale to maximise its shareholder value. While no buyers have been confirmed, several potential candidates have emerged based on the company’s assets, particularly its genetic database of over 15 million customers and the ongoing sale dynamics.
So, will the sale of 23andMe be a merger, acquisition or partnership? Let's dive in and examine the most likely buyers:
Anne Wojcicki (Independent Bidder)
Working Hypothesis > Wojcicki, the co-founder and former CEO, resigned on March 23, 2025, explicitly to position herself as an independent bidder in the bankruptcy sale. She has been trying to take 23andMe private since April 2024, with her most recent offer (rejected March 10, 2025) valuing the company at $11 Million. Her deep personal stake, owning about 49% of the company and stated commitment to its long-term vision make her a frontrunner.
Reality and Challenges > Her prior bids were rejected by the board for being too low and her latest valuation is below the company’s current $50 million market cap. She’ll need to outbid others in the 45-day bidding process, which may strain her resources unless backed by external partners.
Pharmaceutical or Biotech Companies
Working Hypothesis > 23andMe’s genetic database is a goldmine for drug discovery, with potential to identify novel therapeutic targets. Companies like GlaxoSmithKline (GSK), which previously invested $300 Million in 23andMe in 2018 for a four-year research collaboration, could see value in acquiring the full dataset. Other big Pharma players like Pfizer, Roche, or Novartis, might also bid, given their interest in personalised medicine and genomics driven R&D.
Reality and Challenge > Privacy concerns and regulatory hurdles (eg. compliance with the Hart-Scott-Rodino Act) could complicate a purchase. The $30 Million settlement from the 2023 data breach might also deter buyers wary of liability.
Tech Giants with Health Ambitions
Working Hypothesis > Companies like Google (Alphabet), Amazon or Apple, which are expanding into healthcare, could view 23andMe’s data as a strategic asset. Google’s ties are notable, Wojcicki’s ex-husband, Sergey Brin, co-founded it and Google invested $3.9 Million in 23andMe’s early days. Amazon’s push into telehealth (via One Medical) or Apple’s health-tracking ecosystem (Apple Watch) could integrate 23andMe’s genetic insights.
Reality and Challenges > Antitrust scrutiny and public backlash over data privacy could limit their ability to bid. The bankruptcy court’s requirement that buyers comply with data protection laws adds complexity.
Private Equity Firms
Working Hypothesis > Private equity firms often swoop in during Chapter 11 sales to acquire distressed assets at a discount. BlackRock, has the capital and a history of investing in biotech (though no direct evidence ties it to 23andMe yet). Firms like Blackstone (which owns AncestryDNA) could also see synergies in merging genetic data platforms.
Reality and Challenges > Their focus might be on flipping the company rather than long-term development, which could clash with 23andMe’s mission driven ethos. Valuation disputes could arise if bids don’t meet creditor expectations.
Competitors in Genetic Testing
Working Hypothesis > Rivals like AncestryDNA (owned by Blackstone) or MyHeritage could acquire 23andMe to consolidate the consumer genomics market, gaining its customer base and proprietary tech. AncestryDNA in particular, might leverage 23andMe’s health-focused data to expand beyond ancestry tracing.
Reality and Challenges > Overlap in services might trigger regulatory reviews and the declining demand for one-time DNA kits (a shared struggle) could reduce their interest unless the price is exceptionally low.
The sale process, if approved by the US Bankruptcy Court for the Eastern District of Missouri, involves a 45-day bidding period, potentially followed by an auction if multiple qualified bids emerge. 23andMe secured $35 Million in debtor-in-possession financing from JMB Capital Partners to sustain operations, suggesting a floor for serious offers.
Wojcicki’s insider knowledge and determination give her an edge, but external players with deeper pockets, like Pharma or Tech firms, could dominate if they see strategic value outweighing the risks.
Wojcicki is the most vocal contender so far, but a dark-horse bid from a pharma giant like GSK or a tech player like Google could shift the outcome, given their resources and prior ties. The final buyer will hinge on bid size, court approval and how much weight is given to preserving 23andMe’s mission versus pure financial return. As of now, it’s too early to name a definitive winner, the process is unfolding in real time.
Nelson Advisors > HealthTech M&A
Nelson Advisors specialise in mergers, acquisitions and partnerships for Digital Health, HealthTech, Health IT, Healthcare Cybersecurity, Healthcare AI companies based in the UK, Europe and North America. www.nelsonadvisors.co.uk
We work with our clients to assess whether they should 'Build, Buy, Partner or Sell' in order to maximise shareholder value and investment returns. Email lloyd@nelsonadvisors.co.uk
Nelson Advisors regularly publish Healthcare Technology thought leadership articles covering market insights, trends, analysis & predictions @ https://www.healthcare.digital
We share our views on the latest Healthcare Technology mergers, acquisitions and partnerships with insights, analysis and predictions in our LinkedIn Newsletter every week, subscribe today! https://lnkd.in/e5hTp_xb
#HealthTech #DigitalHealth #HealthIT #NelsonAdvisors #Mergers #Acquisitions #Growth #Strategy #Cybersecurity #HealthcareAI #Partnerships #NHS #UK #Europe #USA #Canada
Nelson Advisors
Hale House, 76-78 Portland Place, Marylebone, London, W1B 1NT
Contact Us
Meet Us
Digital Health Rewired > 18-19th March 2025
NHS ConfedExpo > 11-12th June 2025
HLTH Europe > 16-19th June 2025
HIMSS AI in Healthcare > 10-11th July 2025
Why Would Anne Wojcicki Acquire 23andMe?
Wojcicki has poured nearly two decades into 23andMe, holding about 49% of its shares and steering it through its rise (a $6 Billion valuation in 2021) and fall. Acquiring it now could be about reclaiming control to protect her legacy, especially after resigning as CEO on March 23, 2025, under pressure from a board that rejected her vision.
She’s long championed 23andMe’s genetic database, over 15 Million profiles, as a revolutionary asset for healthcare innovation. Her repeated buyout attempts since April 2024, including a $11 Million offer in March 2025, signal confidence that she can unlock value others undervalue, particularly after the stock crashed 98% from its SPAC peak. Bankruptcy offers a chance to buy it at a discount and reset the company’s trajectory.
As an independent bidder, Wojcicki can bypass the board that stymied her privatisation efforts. Going private would free her from public market scrutiny and quarterly profit pressures, which she’s blamed for stifling long-term innovation. Her resignation as CEO was explicitly framed as a move to bid without conflicts of interest, giving her a clean shot at ownership.
Beyond business, there’s a personal angle. Co-founded with her then-husband Sergey Brin (Google co-founder), 23andMe carries familial significance. While their marriage ended, her sister Susan Wojcicki (late YouTube CEO) was an early supporter. Reclaiming the company could be a way to honour that history amid its distress.
What could her plans for the future entail?
If Wojcicki acquires 23andMe, her plans would likely build on her original mission, to democratise genetic insights and advance healthcare, while addressing the company’s financial and operational woes.
Refocus on Drug Discovery
Wojcicki has emphasised 23andMe’s potential in therapeutics, leveraging its database to identify drug targets. Past collaborations, like the $300 Million GSK deal in 2018, yielded limited results (one drug in trials), but going private could let her double down without shareholder demands. She might seek new biotech partnerships or spin off a dedicated R&D arm, aiming to finally profit from the data she’s amassed.
Rebuild Consumer Trust and Product Lines
The 2023 data breach (settled for $30 Million in 2024) eroded customer confidence, and DNA kit sales have waned. Wojcicki could overhaul the consumer business, perhaps enhancing subscription models with AI-driven health insights or integrating wearables, to regain traction. Privacy would be a priority; she might invest heavily in security to restore the brand’s reputation.
Pivot to a Leaner, Private Entity
Public market pressures exposed 23andMe’s inability to turn a profit (losses persisted despite $1.8 Billion in revenue since inception). As a private company, Wojcicki could slash costs, closing unprofitable segments like therapeutics if they don’t pan out and focus on sustainable niches, like licensing genetic data to researchers or insurers.
Long-Term Vision: Personalised Medicine Ecosystem
Her ultimate goal might be a fully integrated platform combining genetic data, health records, and lifestyle inputs (eg. diet, exercise) to offer tailored medical advice. This aligns with her early pitches about “empowering individuals” and could involve partnerships with tech giants (like Google, given her ties) or healthcare providers. It’s ambitious but risky, requiring capital she’d need to secure post-acquisition.
Potential Sale or Exit Strategy
Less likely but possible: Wojcicki could acquire 23andMe to stabilise it, then sell it at a higher valuation to a Pharma or Tech buyer. This would recoup her investment and cement her role in its turnaround, though it contradicts her stated commitment to its mission.
Wojcicki’s success hinges on outbidding competitors, like pharma firms or private equity, in the 45-day sale process and securing financing beyond the $35 Million debtor-in-possession loan 23andMe currently has. Her $11 Million offer was deemed too low before, so she may need partners (speculatively, family connections like Brin or Silicon Valley allies). If she wins, she’d inherit a company with $50 Million in market cap, a tarnished brand, and regulatory baggage, but also a unique dataset few can rival.
In short, Wojcicki’s bid is driven by a mix of idealism and pragmatism: she wants to save her brainchild and prove its worth on her terms. Her future plans would likely balance immediate survival (cost cutting, trust building) with her grand vision of genetics driven healthcare, though execution would test her ability to adapt after years of mixed results.
Why would Big Pharma or a Biotech company acquire 23andMe?
23andMe possesses genetic data from over 15 Million customers, making it one of the largest and most diverse consumer genomics datasets available. For Big Pharma (eg. Pfizer, Roche, GlaxoSmithKline) or biotech firms (eg. Amgen, Regeneron), this is a rare asset for studying disease genetics, identifying drug targets, and accelerating research far beyond what they could collect independently.
The pharmaceutical industry faces long, expensive R&D cycles with high failure rates. 23andMe’s data could pinpoint genetic markers for diseases, enabling faster target validation and patient recruitment for trials. GSK’s $300 Million deal with 23andMe (2018–2022) produced one drug candidate, suggesting untapped potential a full acquisition could unlock.
With healthcare shifting toward precision treatments, 23andMe’s health-related genetic insights (eg. cancer risk, drug response profiles) align with Big Pharma’s push into tailored therapies. Biotech firms could use it to develop niche drugs for genetically defined populations, like rare disease cohorts.
In Chapter 11 bankruptcy as of March 23, 2025, 23andMe’s $50 Million market cap is a fraction of its $6 Billion peak. A buyer could acquire its valuable data and tech at a steep discount, especially with the 45-day sale process potentially driving competitive but still below-historical-value bids.
Owning 23andMe could give a company a lead in genomics over rivals. Unlike competitors like AncestryDNA (genealogy-focused), 23andMe’s health data offers unique applications. Snagging it before a tech giant (eg. Google) or private equity firm does could be a pre-emptive strike.
What could Pharma or BioTech's plans for the future entail?
A Big Pharma or biotech acquirer would likely prioritise the data’s scientific and commercial potential, reshaping 23andMe to fit their business model. Here’s what they might do:
Integrate into R&D Pipelines
The core plan would be to mine the genetic database for drug development. Using AI and bioinformatics, they could identify novel targets (eg. Roche for Oncology, Pfizer for Cardiovascular) and validate them faster. The data might also refine clinical trial design by matching patients to therapies based on genetics.
Repurpose or Downsize Consumer Operations
The DNA testing kit business has weakened, hit by declining demand and the 2023 data breach ($30 Million settlement). A buyer might scale it back to a minimal data-collection tool, pivot it to subscription-based health insights tied to their drugs, or divest it entirely to focus on the database.
Launch Therapeutics and Diagnostics
Beyond research, they could develop products directly from the data, like companion diagnostics for existing drugs (eg. GSK pairing genetic tests with a cancer therapy) or new treatments for rare conditions (a biotech specialty). 23andMe’s FDA approved testing infrastructure could expedite this.
Collaborate with Tech or Insurers
To amplify value, a buyer might partner with tech firms (eg. Amazon for cloud analytics, Google for AI) or insurers (eg. Aetna for personalised coverage plans). This could extend 23andMe’s reach into healthcare delivery, though data privacy would need tight oversight.
Licence Data for Revenue
If integration isn’t the focus, they could licence anonymised data to other researchers, academic institutions, or even competitors, creating a steady income stream. This would leverage the asset with minimal operational burden.
Big Pharma or biotech would acquire 23andMe for its data’s transformative potential in drug discovery and personalized medicine, capitalising on a bankruptcy bargain. Their plans would likely center on R&D integration and product development, sidelining or retooling the consumer-facing business Anne Wojcicki championed. Success depends on outbidding rivals and managing regulatory/PR hurdles, but the payoff could redefine their innovation pipeline.
Acquiring 23andMe means navigating strict data privacy laws (eg. GDPR, HIPAA) and addressing the 2023 breach’s fallout. Repurposing consumer data could trigger regulatory reviews or lawsuits.
GlaxoSmithKline could emerge as a buyer. With prior collaboration, GSK might fully integrate 23andMe into its R&D, focusing on therapeutics while phasing out consumer kits.
Regeneron could emerge as a buyer: Known for genomics (eg. its sequencing center), it could use 23andMe to target rare diseases, maintaining the platform as a research engine.
Why would one of the Tech Giants with health ambitions acquire 23andMe?
23andMe’s database of over 15 Million genotyped customers offers a rich, unique dataset that tech giants could leverage to advance their healthcare initiatives. For companies like Google (via Verily), Amazon (via One Medical), or Apple (via health features), this data could enhance predictive models, personalise health services, or refine wellness products, areas where they’re already investing heavily.
Tech giants have built platforms that could integrate 23andMe’s genetic insights seamlessly. Google’s AI prowess, Amazon’s telehealth infrastructure, and Apple’s wearable tech (eg. Apple Watch) could combine with genetic data to offer next-level health monitoring, diagnostics, or treatment recommendations, strengthening their competitive edge in consumer health.
Acquiring 23andMe would fast-track their ambitions in personalised healthcare, a booming field. Unlike Big Pharma, which focuses on drugs, tech giants could use the data to deliver digital health solutions, think Google predicting disease risk, Amazon tailoring telehealth plans, or Apple alerting users to genetic predispositions via wearables, without the regulatory burden of drug development.
With 23andMe in Chapter 11 as of March 23, 2025, and its market cap at $50 Million (down from $6 Billion), a tech giant with deep pockets (e.g., Google’s $100 Billion+ cash reserves) could snag it at a discount during the 45-day sale process. It’s a low-risk, high-reward play for a company with long-term health ambitions.
Beyond health products, 23andMe’s data could feed into broader business models, advertising (Google), eCommerce (Amazon), or subscription services (Apple). Anonymised genetic insights could refine targeting or create new revenue streams, aligning with their data-driven DNA.
What could one of the tech giants plans for the future entail?
A tech giant acquiring 23andMe would likely reorient the company toward digital health integration and consumer engagement, leveraging their technological strengths. Here’s what they might do:
Enhance Health Platforms with Genetic Insights
Google (Alphabet/Verily): Integrate 23andMe data into Verily’s AI-driven health projects (eg. Baseline Study) to predict disease onset or refine Google Fit. They might also use it to bolster DeepMind’s genomics research, creating tools for doctors or consumers.
Amazon: Pair genetic data with One Medical and Alexa to offer personalised telehealth consultations or proactive wellness plans (eg. “Your BRCA risk suggests this screening”).
Apple: Link 23andMe profiles to the Apple Watch and Health app, alerting users to genetic risks (eg. heart conditions) and recommending lifestyle changes or doctor visits.
Revamp the Consumer Business
The DNA kit market has faded, but a tech giant could reinvent it. Amazon might bundle kits with Prime for ongoing health subscriptions; Apple could tie them to a premium “Apple Health Plus” service; Google could offer free kits to expand data collection, monetising via ads or partnerships. They hadd likely address the 2023 breach ($30 Million settlement) with top-tier security to rebuild trust.
Develop Predictive and Preventive Tools
Using their AI and cloud capabilities, they could turn 23andMe into a predictive health engine. Google might build a “genetic risk dashboard,” Amazon could automate preventive care alerts, and Apple could push real-time health nudges (e.g., “Your genes suggest more exercise”). This shifts 23andMe from a one-time test to a continuous health companion.
Partner with Healthcare Stakeholders
They could license 23andMe data to insurers (eg. tailoring premiums), hospitals (eg. patient triage), or Pharma (eg. trial recruitment), creating a B2B revenue stream. Amazon’s AWS could host a genomics marketplace, while Google Cloud might power research collaborations.
Explore Broader Data Applications
Beyond health, they might mine genetic data for behavioural insights, Google for ad targeting (eg. “genetically prone to fitness?”), Amazon for product recommendations, Apple for personalised app experiences. This would require strict anonymisation to dodge privacy backlash.
A tech giant would acquire 23andMe to supercharge its health ambitions with genetic data, bought at a bankruptcy discount. Their plans would focus on integrating it into consumer-facing platforms, emphasizing prediction and prevention over 23andMe’s original testing model. Success hinges on outbidding rivals and managing privacy optics, but the payoff could redefine digital health, less about drugs, more about data-driven lifestyles.
The 2023 data breach and laws like GDPR/CCPA mean a tech giant must navigate intense scrutiny. Public distrust of “Big Tech” owning genetic data could spark PR crises or antitrust probes (eg. FTC review under Hart-Scott-Rodino). Merging 23andMe’s legacy systems with their tech stacks (eg. AWS, iCloud) and retraining staff could be pricey, especially with $35 million in debtor-in-possession financing already committed.
Google could emerge as a buyer: Turn 23andMe into a data hub for Verily, offering consumers a “Google Genomics” app while feeding Alphabet’s health moonshots.
Amazon could emerge as a buyer: Fold it into One Medical, creating a genetics-driven telehealth giant with Prime perks.
Apple could emerge as a buyer: Make 23andMe the backbone of a premium health ecosystem, tying genetic insights to wearables and subscriptions.
Why would one of the Private Equity groups acquire 23andMe?
Private equity (PE) firms, such as BlackRock, Blackstone, KKR or similar players, specialise in acquiring distressed or undervalued assets, optimising them, and generating returns through restructuring or resale.
With a market cap of $50 Million (down from $6 Billion in 2021), 23andMe is a bargain in its bankruptcy sale process. PE firms thrive on snapping up companies at low valuations during Chapter 11, betting they can unlock value where others see risk. The 45 day bidding window offers a prime opportunity.
The company’s dataset of over 15 Million genotyped customers is a unique, high-potential asset. PE firms could see it as a goldmine for monetisation, whether through licensing, partnerships, or spinning off segments, without needing to innovate themselves.
23andMe has struggled with profitability and a declining consumer testing market, compounded by a 2023 data breach ($30 Million settlement). PE firms often target such companies, believing their operational expertise can cut costs, streamline operations, and flip the business for profit.
Some PE firms already own genomics or health-related companies. For example, Blackstone owns AncestryDNA, a direct competitor. Acquiring 23andMe could create synergies, merging datasets, consolidating market share, or cross-selling services, boosting the value of their holdings.
PE firms typically aim for a 3 to 7 year horizon to exit via sale or IPO. 23andMe’s recognisable brand and data could be polished and sold to a Pharma giant, Tech company, or even taken public again after restructuring, offering multiple lucrative paths.
What could one of the private equity groups plans for the future entail?
Private equity firms focus on maximising returns, often through aggressive cost-cutting, asset stripping, or repositioning. Here’s what they might do with 23andMe post-acquisition:
Operational Restructuring
Slash overhead (eg. layoffs, closing unprofitable units) to make 23andMe leaner. The consumer DNA kit business, hit by waning demand, might be downsized or retooled into a low-cost, subscription based model to stabilise cash flow while preserving data collection.
Monetise the Genetic Database
License the 15 Million-strong dataset to pharmaceutical companies, biotech firms, insurers, or academic institutions for research or commercial use. This could generate immediate revenue with minimal investment, turning the data into a passive income stream.
Break Up and Sell Parts
If synergies don’t pan out, they might split 23andMe into pieces: sell the consumer business to a competitor (eg. MyHeritage), the data to a Pharma giant (eg. GSK), and the tech platform to a health startup. This “asset stripping” maximises value by catering to specialised buyers.
Merge with Portfolio Companies
A firm like Blackstone could integrate 23andMe with AncestryDNA, creating a dominant player in consumer genomics. They might combine datasets for a richer offering, cross-market health and ancestry services, or use economies of scale to cut costs, aiming for a bigger exit later.
Prepare for Resale or IPO
After 3 to 5 years of optimisation, boosting revenue, trimming losses, and polishing the brand, they could sell 23andMe to a strategic buyer (Tech, Pharma) or relaunch it as a public company. The goal would be a valuation far exceeding their purchase price, leveraging the bankruptcy discount.
A Private Equity group would acquire 23andMe for its undervalued assets and turnaround potential, aiming to profit through efficiency and strategic exits rather than innovation. Their plans would likely emphasise short-term cash flow (data licensing, cost cuts) and a sale to a higher bidder, contrasting with Wojcicki’s mission-driven vision or Tech/Pharma’s long-term bets. Success depends on securing it cheap and navigating privacy hurdles, but the payoff could be substantial for a savvy firm.
Unlike Tech or Pharma, PE firms rarely invest in long-term R&D. If 23andMe’s value hinges on future breakthroughs (eg. Therapeutics), they might struggle to realise it.
Blackstone could emerge as a buyer: Merge 23andMe with AncestryDNA, streamline operations, and sell the combined entity to a tech giant like Amazon within 5 years.
KKR could emerge as a buyer: Focus on data licensing to Pharma, cut consumer operations, and flip the company to a Biotech firm like Regeneron after boosting EBITDA.
Why would one of the genetic testing competitors acquire 23andMe?
Genetic testing competitors like AncestryDNA (owned by Blackstone), MyHeritage, or smaller players (eg. Helix) operate in a similar consumer genomics space as 23andMe.
The consumer DNA testing market has matured, with demand for one-time ancestry and health kits declining. Acquiring 23andMe, with its 15 Million+ customer base, would allow a competitor to consolidate market share, reduce competition and dominate a shrinking but still viable niche.
23andMe’s dataset, over 15 Million genotyped profiles, dwarfs most competitors in scale and includes health data (eg. BRCA mutations, disease risks) that AncestryDNA and MyHeritage largely lack. This could enhance their offerings, making them more competitive in both ancestry and health insights.
With a market cap of $50 Million (down from $6 Billion in 2021), 23andMe is a distressed asset in its 45-day sale process. A competitor could acquire its brand, tech, and data at a fraction of building a similar platform, especially with $35 Million in debtor-in-possession financing keeping it operational.
Competitors already have infrastructure for DNA testing, customer support, and data analysis. Adding 23andMe’s assets could lower costs through economies of scale, streamline marketing, and expand their user base without starting from scratch.
While AncestryDNA focuses on genealogy and MyHeritage on family trees, 23andMe’s health-focused testing (FDA-approved for certain reports) offers a diversification angle. A competitor could use this to enter the growing personalised health market, appealing to customers beyond ancestry enthusiasts.
What could a competitors plans for the future entail?
A genetic testing competitor acquiring 23andMe would likely aim to integrate its strengths into their business while addressing its weaknesses. Here’s what they might do:
Merge Customer Bases and Data
Combine 23andMe’s 15 Million users with their own (eg. AncestryDNA’s 20 million+) to create a larger, unified platform. They could cross-sell services, offering 23andMe’s health insights to Ancestry customers or Ancestry’s genealogy tools to 23andMe users, boosting engagement and revenue.
Enhance Product Offerings
Incorporate 23andMe’s health reports (eg. genetic predispositions, carrier status) into their lineup. AncestryDNA, for instance, could evolve from ancestry-only to a dual-purpose service, while MyHeritage might add health features to its subscription model, capitalising on 23andMe’s FDA approvals.
Streamline Operations
Cut redundancies (eg. overlapping labs, staff) to reduce costs, a priority given 23andMe’s lack of profitability. They might phase out weaker 23andMe products (like standalone kits) and focus on integrating its tech into their more efficient systems.
Rebuild Trust and Brand
The 2023 data breach ($30 Million settlement) damaged 23andMe’s reputation. A competitor could leverage their own brand equity, AncestryDNA’s stability or MyHeritage’s privacy focus, to restore consumer confidence, investing in security upgrades to protect the combined dataset.
Explore New Revenue Streams
License 23andMe’s health data to insurers, wellness companies, or researchers, creating a B2B revenue channel. Alternatively, they could pivot to a subscription model (eg. annual health updates), leveraging 23andMe’s data to keep customers engaged long-term.
Merging with 23andMe could trigger antitrust scrutiny (eg. FTC review), especially for AncestryDNA, already a market leader. Health data use also requires compliance with GDPR, HIPAA, and CCPA, complicated by the 2023 breach fallout.
The declining DNA kit trend means growth relies on innovation, not just scale. Overpaying for 23andMe could backfire if new revenue doesn’t materialise.
A genetic testing competitor would acquire 23andMe to consolidate the market, gain its valuable data, and diversify at a bankruptcy discount. Their plans would focus on integration, blending users, tech, and offerings, while cutting costs and rebuilding trust. Unlike pharma’s R&D focus or tech’s digital ambitions, their goal would be to strengthen an existing consumer genomics model, betting on scale and synergy for profitability. Success depends on outbidding rivals and reviving a fading market.
AncestryDNA (Blackstone) could emerge as a buyer: Merge datasets, add health features to Ancestry’s platform, and market a premium “genealogy + health” package, aiming to dominate consumer genomics.
MyHeritage could emerge as a buyer: Absorb 23andMe’s users, enhance its family tree tools with health insights, and target privacy-conscious European markets with a revamped brand.
Merger, acquisition or strategic partnership > what is the most likely outcome for 23andMe?
On balance, an acquisition is the most likely outcome for 23andMe, with the bankruptcy sale process concluding in a purchase by either Wojcicki or an external entity (Pharma, Tech, or PE) by mid-2025.
The genetic database’s value ensures a buyer will emerge, making a full ownership transfer more feasible than a merger or partnership given the company’s current distress. The exact winner depends on bid strength, but the structure favors acquisition over alternatives.
Mergers lack a willing peer and partnerships can’t resolve the financial crisis alone.
Wojcicki has insider advantage and resolve, but her lowball offers (eg. $11 Million) may be outbid by deeper-pocketed suitors like GSK (past partner), Google (historical ties), or Blackstone (owns AncestryDNA).
A pharma or private equity acquisition slightly edges out Wojcicki due to capital and strategic fit, though her tenacity keeps her in play.
Nelson Advisors > HealthTech M&A
Nelson Advisors specialise in mergers, acquisitions and partnerships for Digital Health, HealthTech, Health IT, Healthcare Cybersecurity, Healthcare AI companies based in the UK, Europe and North America. www.nelsonadvisors.co.uk
We work with our clients to assess whether they should 'Build, Buy, Partner or Sell' in order to maximise shareholder value and investment returns. Email lloyd@nelsonadvisors.co.uk
Nelson Advisors regularly publish Healthcare Technology thought leadership articles covering market insights, trends, analysis & predictions @ https://www.healthcare.digital
We share our views on the latest Healthcare Technology mergers, acquisitions and partnerships with insights, analysis and predictions in our LinkedIn Newsletter every week, subscribe today! https://lnkd.in/e5hTp_xb
#HealthTech #DigitalHealth #HealthIT #NelsonAdvisors #Mergers #Acquisitions #Growth #Strategy #Cybersecurity #HealthcareAI #Partnerships #NHS #UK #Europe #USA #Canada
Nelson Advisors
Hale House, 76-78 Portland Place, Marylebone, London, W1B 1NT
Contact Us
Meet Us
Digital Health Rewired > 18-19th March 2025
NHS ConfedExpo > 11-12th June 2025
HLTH Europe > 16-19th June 2025
HIMSS AI in Healthcare > 10-11th July 2025
Comments