Francisco Partners is acquiring MyHeritage, sources say for $600M
Genealogy online monitoring is a big industry, and today M&A news is coming for one of the biggest names.
TechCrunch has heard and reported that Francisco Partners are buying Israel's "MyHeritage.com," a lucrative platform that allows people to test DNA and monitor the lines of their families of 62 million users for a price that a close to the deal source tells us is $600 million.
A MyHeritage spokesperson confirmed the TechCrunch offer over the phone, but not the price.
Francisco Partners did not respond to our comment message, but we will update this article as we hear more.
We understand that the agreement will be formally announced very quickly.
Update: we got a press release now, so that's "official." I suppose.
DNA testing and genealogy research is typically a very fragmented market, but MyHeritage is a first player — since 2003 — and a prominent player.
It also has a database of about 13 billion historical documents, alongside the 62 million daily users of its website - and is available in 42 languages.
On its website, users have developed and extended about 58 million family trees.
"I had a clear vision that led me to found my company 18 years ago and continues to push me on today – making discovery of family history easier using technology and unlocking fun in genealogy: a human effort that connects people," Gilad Japhet, founder and CEO of MyHeritage, said in an announcement.
"We have developed new, interesting opportunities for people to learn about their roots with the support of a large and devoted team, years of hard work and relentless technical advancement.
At Francisco Partners we see a real partner in our path forward, not just because of their faith in the company through this transaction but also because of their wish for us to continue to follow our way of view and help us do what we do best – putting our customers first and getting them life-enriching and even life-changing experiences.
This move would help us to hit higher milestones, spend more capital to create greater value for our customers and reach a greater audience.
We are unbelievably excited for this next step in the growth of our business."
In reality, while MyHeritage is already profitable, this acquisition represents a moment for the organization (and its new owner) to double its commitment in what they are already doing and raise their offerings to the next level.
I assume that this would require investment in the cybersecurity.
MyHeritage has a rather vivid profile in the public eye, not necessarily optimistic.
In settling one of the most challenging murder investigations of decades, the search for the Golden State Murderer, it was a big player.
However, there was also a big data leak, which affected some 92 million accounts in 2018.
Any MyHeritage users' contact data is part of an enormous array of personal information – summarized from a series of database violations – which were released publicly in 2019.
The deal comes at a time when another big DNA player, 23andme, is making public a $3.5 billion worth of SPAC.
When we hear more, we will update this story.