It said new buyers Regeneron had committed to protect user data as part of the deal.
The DNA testing firm 23andMe says it has entered into an agreement to be acquired by Regeneron Pharmaceuticals for $256m (£192m).
It comes two months after the company filed for bankruptcy protection in the US.
23andMe said Regeneron had committed to comply with its privacy policies as part of the deal, and that Regeneron has security controls in place to protect user data.
Last month, the firm agreed to have an ombudsman oversee the protection of user data in response to demands by several state attorneys general in the US.
The officials expressed concern over the potential for unscrupulous buyers to wield the data against consumers.
Regeneron will acquire nearly all of 23andMe’s assets, the company said in a statement.
Its subsidiary Lemonaid Health will be wound down under the agreement.
23andMe will continue to operate as a wholly-owned unit unit of Regeneron, which said it would use the firm’s data for drug development.
« We are pleased to have reached a transaction that maximizes the value of the business and enables the mission of 23andMe to live on, while maintaining critical protections around customer privacy, choice and consent with respect to their genetic data », said 23andMe’s board chairman Mark Jensen.
