Israeli genealogy company MyHeritage has announced that private equity firm Francisco Partners has signed a definitive agreement to acquire it. No financial details were disclosed but market sources estimate that the Israeli company, which has developed DNA testing for ancestry and genetic testing through a platform with software, web and mobile products, is being acquired for $600-700 million.
Founded in 2003 by CEO Gilad Japhet, the company raised $49 million in five financing rounds, the last of which was in 2012, and since then it has been profitable.
Investors in the company include Accel Partners , Index Ventures, and Bessamer as well as private investors Aviv Raiz and Yuval Rakavy, who have continued to support the company.
According to MyHeritage's announcement, some of the company's current shareholders including HP Beteiligungs GmbH, Rakavy, Gigi Levy and Japhet will reinvest in MyHeritage alongside Francisco Partners.
MyHeritage's platform has 62 million users in 42 languages and has created 58 million family trees and has accrued a databank of 13 billion historical family lists.
Japhet said, "When I founded the company from my home eighteen years ago, I had a clear vision that drove me, and continues to drive me today - to make family history discovery easier using technology and to unlock the fun in genealogy: the human pursuit that bonds people. With the help of an excellent and dedicated team, years of hard work, and with constant technological innovation, we created new and exciting ways for people to learn about their origins. In Francisco Partners we see a true partner for our journey ahead, not only demonstrated by the trust they are placing in our company through this acquisition, but in their desire for us to remain true to our vision by continuing along our path and helping us do what we do best - putting our users first and giving them life-enriching, and sometimes life-changing, experiences. This move will enable us to reach new heights, invest more resources in creating greater value for our users and to reach a larger audience. We’re incredibly excited for this next chapter in our company’s evolution."
With the closing of the deal, Francisco Partners partner and co-head of Europe Matt Spetzler will join MyHeritage's board. He said, "With its unmatched presence across Europe combined with its development of unique, cutting-edge technologies, MyHeritage is an ideal investment for Francisco Partners. The company has proven itself to be an innovation powerhouse through its robust subscription business, unique positioning, advanced technology portfolio, and international focus that has enabled it to build a superior user experience."
Published by Globes, Israel business news - en.globes.co.il - on February 24, 2021
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