DNA-testing firm 23andMe to go public through Branson-backed SPAC in a $3.5 billion deal

Billionaire Branson, a serial entrepreneur whose space tourism company Virgin Galactic went public through a deal with prolific blank-check investor Chamath Palihapitiya's special purpose acquisition company (SPAC) in 2019, is the latest celebrity to join the blank-check dealmaking frenzy.

A SPAC, or a blank-check firm, is a shell company that raises funds in an initial public offering (IPO) with the aim of acquiring a private company, which then becomes public as result of the merger.

For the company being acquired, the merger is an alternative way to go public over a traditional IPO. SPACs emerged last year as one of the most popular investment vehicles on the Wall Street.

NBA Hall of Famer Shaquille O'Neal, high-profile politicians including former U.S. Commerce Secretary Wilbur Ross, former Republican House Speaker Paul Ryan and hedge fund bosses Dan Loeb and Bill Ackman are also looking to strike deals through their SPACs.

23andMe, which was co-founded by Wojcicki in 2006, sells genetic testing kits directly to consumers. Over the years, 23andMe has become popular with consumers, and in 2018 caught the eye of GlaxoSmithKline, which invested $300 million in the Silicon Valley company, best known for its saliva-based test kits that offer users a glimpse into their genetic ancestry.

The merged entity will trade under the symbol "ME" on the New York Stock Exchange.