Consumer genetics and research firm 23andMe said on Friday that it has signed an agreement to acquire Lemonaid Health, which offers online access to a variety of telemedicine and pharmacy services, for $400 million in cash and stock.
Under the terms of the deal, 23andMe will acquire San Francisco-based Lemonaid for $100 million in cash and $300 million in common stock. The transaction is expected to close by the end of the year.
"We believe that by combining Lemonaid Health's telemedicine platform, including its online team of medical professionals and its pharmacy services, with our consumer business, we are taking an important step in transforming the traditional primary care experience and making personalized healthcare a reality," 23andMe cofounder and CEO Anne Wojcicki said in a statement. "By starting with genetics as the foundation, we will give patients and healthcare providers better information about health risks and treatments, opening up the door to prevent as well as better manage disease."
In August, newly public Sunnyvale, California-based 23andMe reported a 23 percent increase in first quarter revenues on strong sales of its Personal Genome Service kit, which uses genotyping to detect clinically relevant variants in genomic DNA from saliva samples.