Anne Wojcicki, CEO of 23andMe, has partnered with private equity powerhouse New Mountain Capital to take the pioneering genetic testing firm private in a buyout offer valuing the company at approximately $74.7 million. The proposal, detailed in a filing with the U.S. Securities and Exchange Commission, signals a strategic pivot for the embattled company.
Legal Heavyweights Steer the Bid
Wojcicki has enlisted Skadden Arps Slate Meagher & Flom LLP to navigate the legal landscape, while New Mountain Capital is receiving counsel from Ropes & Gray LLP. Dechert LLP, which had been tapped by 23andMe last year to evaluate potential offers from Wojcicki, remains involved in the process.
“We believe the best course of action is for the company to go private, which will enable it to focus on executing long-term value creation initiatives,” Wojcicki and Matthew S. Holt, New Mountain’s managing director and president of private equity, stated in a joint letter addressed to 23andMe’s special board committee, included in the SEC filing.
Financial Lifeline and Future Prospects
As part of the proposal, Wojcicki and New Mountain Capital have indicated their willingness to extend secured debt financing to 23andMe, ensuring the company and its subsidiaries have the necessary funds to maintain operations until the transaction’s completion.
