DNA testing company 23andMe said it has signed an agreement to be acquired by Regeneron Pharmaceuticals for $256 million (£192 million).

The company filed for bankruptcy protection two months after the U.S. filed for bankruptcy protection.

23AndMe said Regeneron has committed to complying with its privacy policy and as part of the transaction, Regeneron has the appropriate security controls to protect user data.

Last month, the company agreed to let the Ombudsman oversee the protection of user data in response to the requests of several U.S. state attorneys generals.

Officials expressed concern about the potential of immoral buyers to carry data on consumers.

Regeneron will acquire almost all of the assets of 23AndMe, the company said in a statement.

Under the agreement, its subsidiary Lemonade Health will be cut.

23AndMe will continue to operate as a wholly owned unit of Regeneron, which said it will use the company's data for drug development.

"We are excited to have a deal to maximize business value and enable 23andme's mission to continue moving forward while maintaining critical protections around customer privacy, selecting and agreeing to its genetic data."

The company declined to comment further when contacted by the BBC.

23AndMe was co-founded in 2006 by Anne Wojcicki, who served as CEO until his resignation in March.

Over the years, the company has received high-profile recognition from celebrities including Oprah Winfrey, Eva Longoria and Snoop Dogg.

23andme was published in 2021 and its value is up to $6 billion - but never made money.

The company that once experienced struggled with weak demand for its test suites and never managed to redefine its business model.

A subscription service failed to attract customers and struggled to use its massive amounts of data into drug development, too.

Then in 2023, the company experienced a data breach that exposed genetic data from millions of users.

The company eventually filed a lawsuit claiming it failed to protect the privacy of nearly 7 million customers with personal information.

Hackers access family tree, birth year and geographic location by using customers’ old passwords, but the company maintains data that stolen does not include DNA records.

Two months after the settlement, it cut 200 jobs - about 40% of its workforce.

Ms. Wojcicki tried to privatize the company but did not accept third parties to take over.

When filing for bankruptcy protection on March 23, attorneys general from several U.S. states recommended that their clients clear their information from the company’s database.

At the time, the company said it would continue to protect customer data as set out in its privacy policy and that buyers of any company must comply with laws applicable to customer data.

However, its privacy policy also includes language that can access, sell or transfer personal information if it is "participated in bankruptcy, merger, acquire, reorganize or sell assets".

23AndMe agreed to a court-designated customer genetic data supervisor after several states claimed the company failed to take data security seriously enough.