MyHeritage’s new face-altering feature to boost its valuation
A few days after its acquisition by Francisco Partners, the Israeli genealogy company unveiled a new feature that put it above TikTok, Instagram and Facebook in AppStore downloads
Four days after Israeli genealogy company MyHeritage reported its acquisition by U.S. private equity giant Francisco Partners, the company unveiled a new app that is set to boost the value that the company’s shareholders’ will receive from the sale, Calcalist has learned. The deal’s value following the release is estimated to increase by $100 million.
Last week, MyHeritage released Deep Nostalgia a new feature for its photo enhancer app that allows users to turn old photos into short video clips where those pictured move their faces naturally as if they are alive. Thanks to the feature, the company’s app became the most downloaded app on the Apple app store, surpassing TikTok, YouTube, Instagram, and Facebook. The app climbed to the top of the Apple app store’s list, marking a significant turning point for the company who obtained millions of downloads and new subscriptions. At the end of February, MyHeritage announced that it would be acquired by the U.S. investment fund, Francisco Partners. The companies did not disclose the value of the acquisition, but Calcalist reported that it was estimated around $600 million, an amount that could increase but is dependent on the company’s future milestones.
The deal included a clause that allows MyHeritage to up the value of the deal if it acquires more subscribers. If the company’s subscriptions will continue to climb due to its app store downloads, this could translate to a leap in the company’s valuation and reach $700 million. The new feature was developed in collaboration with the Israeli company D-ID, which generates human faces by using artificial intelligence and deep learning technology. MyHeritage was founded by Gilad Japhet, and is one of the world’s leading genealogy companies.