Blackstone Group Inc. acquired a majority stake in Ancestry.com Inc., the business known for family history research and DNA testing. The deal is valued at $4.7 billion, Blackstone said in a statement Wednesday. It’s the first acquisition by Blackstone’s largest ever private equity fund. Silver Lake and Singaporean sovereign-wealth fund GIC Pte have been the majority owners since 2016. After the deal closes, Blackstone will own about 75% and GIC will still hold about 25% of Ancestry.com.
David Kestnbaum, a Senior Managing Director at Blackstone, said: “We are very excited to partner with Ancestry and its management team. We believe Ancestry has significant runway for further growth as people of all ages and backgrounds become increasingly interested in learning more about their family histories and themselves. We look forward to investing behind further data, functionality, and product development across Ancestry’s market leading platform to continue to provide a differentiated service. Our investment is a prime example of Blackstone’s continued, high-conviction focus on investing in growing, digital consumer businesses, which are resilient in the current environment and beyond.”
Sachin Bavishi, a Managing Director at Blackstone, added: “Ancestry’s large network of highly engaged users, unique content, and scaled technology platform have made it a market leader. We look forward to contributing Blackstone’s resources and leveraging our strong expertise in digital content to further accelerate Ancestry’s growth.”
Margo Georgiadis, President and Chief Executive Officer of Ancestry, said: “Our entire leadership team is thrilled to have the opportunity to partner with Blackstone to further accelerate Ancestry’s global leadership in family history and consumer genomics, and to help us achieve our mission to empower journeys of personal discovery to enrich lives. Looking ahead, in collaboration with Blackstone, we will continue to leverage our unique content, powerhouse consumer brand and technology platform to expand our global Family History business while bringing to life our long-term vision of personalized preventive health.”
What happens to your DNA now then?????
Now that the sales of Genealogy based DNA kits have plateaued and the market for Genealogy Kits is static, will we see Ancestry move away from this area and move into the health based DNA kits which is a colossal market. Therefore will the indexing of records be less of a priority in the future???