23andMe Holding Co, a direct-to-consumer DNA testing company, announced on Friday that it will purchase Lemonaid Health for $400 million in cash and stock in a cash-and-stock deal as it tries to expand into telemedicine.
Patients can get immediate online access to Lemonaid Health for a variety of common diseases, from consultation to treatment. Prescription drugs are also delivered for free and quickly.
In a statement, 23andMe Chief Executive Officer Anne Wojcicki stated, "By starting with genetics as the foundation, we will give patients and healthcare professionals better knowledge about health risks and treatment."
The company is based in Sunnyvale, California. 23andMe is most known for its genetic heritage testing, but the company also aspires to find therapies for diseases like cancer and respiratory problems.
The company stated that it would pay 25% of the total deal value in cash and the remaining 75% in the stock.
The transaction is expected to be completed by the end of 2021.
The merged corporation was valued at $3.5 billion when 23andMe went public in February through a blank-check firm sponsored by Virgin Group founder Sir Richard Branson.