Which genetics companies are currently evaluating private equity buyout offers?

Recent disclosures and media reports indicate that 23andMe and SOPHiA GENETICS are evaluating takeover approaches from private equity bidders. 23andMe formed a board committee to review strategic alternatives, including a potential sale, with reported indications in the $500–700 million range, according to Reuters. SOPHiA GENETICS is weighing take-private proposals from sponsors including KKR, Carlyle, and EQT, Bloomberg reported. DNAnexus has agreed to be acquired by Francisco Partners, reflecting strong sponsor appetite for bioinformatics software platforms.

Why are private equity firms focused on genetics testing and analytics assets now?

Sponsors are prioritizing genetics assets that combine defensible data moats, recurring software revenues, and scalable lab workflows. This profile supports margin expansion through cloud consolidation, LIS rationalization, and payer contracting improvements. Analysts note potential EBITDA uplift from low- to mid-teens into the 20% range within 18–24 months post-close. The sector also benefits from persistent demand in oncology testing, hereditary risk panels, and pharmacogenomics, according to Gartner and Deloitte healthcare M&A analyses.

How are these deals valued and financed in the current market?

Recent deal ranges in genetics platforms and carve-outs span roughly $300–900 million, based on reported figures and industry sources. Financing commonly blends unitranche or term loan B debt with equity checks of about 35–45% of enterprise value, reflecting reimbursement and regulatory risk management. Sponsors structure earn-outs and contingent considerations around payer milestones and data compliance deliverables, aligning integration outcomes with valuation assumptions. Reuters and PitchBook coverage highlights tighter credit conditions but continued sponsor interest in resilient health-tech cash flows.

What regulatory issues are shaping due diligence and integration plans?

FDA oversight of laboratory-developed tests and evolving state and EU privacy frameworks (including GDPR interpretations for genomic data) are central to diligence. Buyers are assessing consent management, cross-border data transfer constraints, and the robustness of privacy-preserving analytics frameworks. To mitigate risk, sponsors are investing in secure computation, federated data models, and upgraded consent flows. These steps help maintain data utility while meeting regulator expectations, as detailed in FDA guidance and EU Commission updates.

What is the near-term outlook for genetics sector PE consolidation?

Analysts expect continued consolidation in early 2026, particularly in oncology reporting platforms, hereditary testing, and bioinformatics marketplaces. Sponsors are likely to pursue take-privates of subscale public software players and carve-outs of lab services to create integrated precision-medicine ecosystems. The focus will be on assets with recurring revenues and strong data moats to support leveraged models under cautious credit markets. Gartner and PitchBook suggest a pipeline of transactions as boards prioritize certainty of close and synergy realization.

KKR And Carlyle Target Genetics Assets As 23andMe And SOPHiA Weigh Offers

Private equity buyers intensify dealmaking across genetics testing and analytics. 23andMe and SOPHiA GENETICS confirm strategic reviews while DNAnexus agrees to a buyout, according to recent filings and media reports.

Published: January 12, 2026 By Marcus Rodriguez Category: Genetics

KKR And Carlyle Target Genetics Assets As 23andMe And SOPHiA Weigh Offers

Executive Summary

Private equity firms step up genetics buyouts, with bids and reviews disclosed since mid-December 2025.
23andMe and SOPHiA GENETICS say they are evaluating takeover proposals, according to recent filings and reports.
DNAnexus agrees to be acquired by Francisco Partners in a software-focused genetics data deal.
Analysts estimate valuations in the $300-900 million range for targeted platforms and testing units.

Deal Momentum In Genetics

Private equity suitors intensify activity in genetics testing and analytics as capital rotates toward scalable software and lab services platforms. In disclosures and media reports since mid-December 2025, consumer genomics company 23andMe said a board committee is evaluating strategic alternatives including a potential sale, with nonbinding interest reportedly valuing the company in the $500-700 million range according to Reuters. Swiss-Nasdaq precision medicine platform SOPHiA GENETICS is also weighing unsolicited take-private approaches from financial sponsors, with bidders assessing a proposal in the $300-400 million range Bloomberg reported.

Genomics data management vendor DNAnexus agreed to be acquired by technology investor Francisco Partners, aligning with sponsors’ strategy to build scale in bioinformatics software, with deal value widely estimated at $300-350 million TechCrunch reported. Clinical diagnostics player NeoGenomics has drawn interest from buyout firms for select business units, with the services segment discussed at an $800-900 million enterprise value range Reuters reported.

Who Is Buying And Why

Sponsors including KKR, Carlyle, and EQT are prioritizing genetics assets with recurring revenue, defensible data moats, and regulated lab workflows that support margin expansion. Industry sources suggest software-heavy targets such as SOPHiA GENETICS and DNAnexus benefit from license-based and usage-linked pricing models, boosting cash conversion and making them attractive bolt-ons to existing healthcare technology platforms McKinsey analysis.

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