Blackstone Acquires Genetic Testing Company for 5 Trillion Won... "Excellent Growth Potential in COVID-19 Environment"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] Blackstone, the world's largest private equity firm, announced on the 5th (local time) that it will acquire Ancestry.com, a leading American genetic testing company. The company explained that it has strong business resilience in the environment of the novel coronavirus infection (COVID-19).

According to foreign media such as Bloomberg, Blackstone negotiated with Ancestry's existing shareholders and agreed to acquire Ancestry for $4.7 billion (approximately 5.6 trillion KRW), including debt. If this deal is completed, Blackstone will hold a 75% stake in Ancestry, while the Singapore Investment Corporation (GIC) among the current shareholders will hold the remaining 25%. This acquisition is the first deal completed through 'Blackstone Capital Partners 8,' the world's largest private equity fund launched by Blackstone last year.

Blackstone explained the investment reason by stating that many consumers use Ancestry's services amid the COVID-19 impact. David Kestenbaum, Senior Manager at Blackstone, said in an interview with Fox Business, "We are focusing on investing in resilient growth-oriented digital consumer businesses in the current situation, and this acquisition is a representative example."

Ancestry.com, established in 1996, is a genetics testing and genealogy site that primarily offers genetic (DNA) testing services to support members in tracing their ancestors. It has secured 3 million paid subscribers across about 30 countries and generates annual sales exceeding $1 billion. In 2009, it raised $100 million through an initial public offering (IPO) on the stock market, and four years ago, it was valued at $2.6 billion.

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