Blackstone Group is set to acquire 75% of direct-to-consumer genetic testing firm Ancestry from its former equity holders in a $4.7 billion deal. Ancestry currently generates $1 billion in revenue annually. It has over 3 million paying consumers. Consumer demand for DTC genetic tests has been on a downswing since 2019. Consumer disinterest is likely being compounded by the fact US consumers are spending less amid the pandemic-induced economic slowdown. A shrinking volume of new customers is likely what led Ancestry to lay off 6% of its staff this year alone.
