Neu Capital acted as debt advisor to myDNA securing US$65m to acquire US based laboratory Gene by Gene for US$130m.

MyDNA, an Australian based personalised medicine business, engaged Neu Capital to source US$65m of debt financing to acquire the significantly larger genetic testing Houston-based firm. The total consideration was US$130m, with 50% debt and 50% roll-over scrip.

MyDNA offers comprehensive DNA testing solutions to enhance overall health results. A highly innovative Melbourne genomics company, myDNA launched with ambitious goals: to revolutionise pharmacogenomics and fulfilling the potential of personalised medicine, before expanding into nutrigenomics.

This vision further included offering personalized nutrition, fitness, and skincare recommendations. Utilizing simple cheek-swab tests, which users can conveniently order online and perform at home.

Through a detailed analysis of their DNA and emerging RNA income streams, Neu Capital was able to source debt financing to complete the purchase.

  • Lower Equity: myDNA only needed to raise minimal further cash equity thus minimizing dilution for shareholders prior to a listing event.
  • Higher Leverage: myDNA was able to utilise strong cashflows of consolidated business to obtain higher levels of leverage (3.5-4x EBITDA).

The merger of the combined companies made them a leading global provider of genealogy, pharmacogenomics, and nutrigenomic services.

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