A blank-check firm, backed by Virgin Group founder Sir Richard Branson, is taking consumer DNA-testing firm 23andMe public in a deal that values the merged entity at $3.5 billion, both companies said on Thursday.

As part of the deal with VG Acquisition Corp, 23andMe will receive proceeds of $759 million, which includes $250 million from a range of investors including Branson, 23andMe co-founder Anne Wojcicki, funds managed by Fidelity Management & Research Co LLC, Altimeter Capital, Casdin Capital, and Foresite Capital.

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.

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

Citigroup is serving as lead financial adviser, capital markets adviser and placement agent to 23andMe.