23andMe Will Spend $400M to Acquire Lemonaid Health

The consumer-focused genealogy researcher says the acquisition will advance its "vision of individualized primary care that empowers consumers to live healthier lives."

23andMe Holding Co. is stepping into the telehealth sector with its announced $400 million acquisition of San Francisco-based Lemonaid Health.

Under the deal, the purchase price is $400 million, of which 25% will be paid in cash and 75% in shares of 23andMe Class A Common Stock. The acquisition is expected to close by December.

Paul Johnson, CEO and co-Founder of Lemonaid Health, will be the general manager of the 23andMe consumer business and will continue to run Lemonaid Health.

"23andMe's mission-driven focus on empowering and transforming the healthcare experience is perfectly aligned with Lemonaid Health's founding principle to improve access to quality healthcare," Johnson said.

Ian Van Every, managing director, U.K. and co-founder of Lemonaid Health, will manage operations in the U.K.

Anne Wojcicki, CEO and co-founder of 23andMe, said that, with the addition of Lemonaid Health's clinical and pharmacy services offerings to her company's consumer business, "we are taking an important step in transforming the traditional primary care experience and making personalized healthcare a reality."

"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," Wojcicki said. "Lemonaid Health's focus on the patient and its philosophy of delivering individualized care fits perfectly with our mission of empowering people to take control of their health."