Meditation app Headspace and video-based mental health therapy services provider Ginger agreed to merge in a deal valuing the combined company at $3 billion.
The terms of the transaction were not disclosed.
Founded in 2010, Headspace offers sessions, videos, and articles on meditation and mindfulness, which can be accessed on a mobile phone and has about 70 million users globally. Headspace raised $93 million in a Series C funding round in February 2020.
Ginger, which raised $100 million in March, provides members with access to unlimited self-guided care and on-demand and scheduled coaching as well as video-based therapy and psychiatry support.
Ginger saw more than a four-fold rise in the number of people using its coaching services and a five-fold jump in therapy users in mid-July compared to the levels seen before the pandemic according to the company.
The combined entity, Headspace Health, will offer a comprehensive digital mental health and wellbeing platform and serves the employees of 2,700 companies.
“We are witnessing a mental health crisis unlike anything we’ve experienced in our lifetimes, yet the majority of mental healthcare today is neither broadly accessible nor affordable,” said CeCe Morken, CEO of Headspace. “Together, as Headspace Health, we will address the systemic challenges of access and affordability in a fundamentally different way by creating the world’s most holistic, scalable, and effective mental health and wellbeing company.”
Upon the close of the merger, Russell Glass, CEO of Ginger, will take on the CEO of Headspace Health. CeCe Morken will remain CEO of Headspace and take on the additional role of President for the combined entity. This transaction is subject to regulatory approval and customary closing conditions and is expected to close in the last quarter of 2021.
“Headspace and Ginger have a shared recognition that the mental health crisis can’t be solved by simply hiring more therapists or moving care online,” said Russell Glass, CEO of Ginger. “Through this merger, we can uniquely tackle the full spectrum of mental health needs – from prevention to clinical care – all from one integrated platform.”
One hundred thirty-six digital health companies were acquired in the first half of 2021 compared to 83 in 1H 2020.