Consumer genetics testing service 23andMe has agreed to acquire US-based online healthcare provider Lemonaid Health in $400m deal which would provide exits for pharmaceutical firms Novartis and Hikma.
Founded in 2014, Lemonaid provides an online platform where users can virtually see physicians and get treatment and medication for a range of illnesses such as diabetes, high blood pressure or asthma, or access mental health services.
A quarter of the purchase price will be paid in cash while the remaining 75% will be in 23andMe stock. Lemonaid’s co-founder and chief executive, Paul Johnson, will become general manager of 23andMe’s consumer business and continue to run Lemonaid’s services.
The company had received $33m in a July 2020 series B round led by venture capital firm Olive Tree Ventures that also featured Correlation Ventures, Artis Ventures, Sierra Ventures and undisclosed other investors, increasing its overall funding to $53m.
Novartis and Hikma co-led Lemonaid’s $11m series A round in 2017 through respective corporate venturing units Novartis Venture Fund and Hikma Ventures. It was filled out by Correlation Ventures, Adaptive Healthcare Fund, 415 Ventures and Vega Ventures.
