Hims & Hers, an online direct-to-consumer telehealth company that uses remote consultation to prescribe cosmetic and sexual health products, announced the acquisition of Honest Health, a hair loss virtual clinic for men.
The financial details of the acquisition were not disclosed.
“Honest Health has demonstrated a powerful combination of leadership, passion, and innovation in digital health – at scale – that will further elevate our ability to provide the Hims & Hers personalized healthcare experience to a new segment of consumers in the United Kingdom,” said Andrew Dudum, CEO, and co-founder of Hims & Hers.
“Adding Honest Health to our family not only perfectly aligns with our mission but also unlocks new category and geographic opportunities to even further accelerate growth. We are thrilled to have the Honest Health team join the Hims & Hers family.”
In January, Hims & Hers has completed its business combination with blank-check company Oaktree Acquisition Corp. at a $1.6 billion valuation. Hims & Hers is backed by $150 million funding. Investors include Founders Fund, McKesson Ventures, Canadian Pension Plan Investment Board, Atomic, and others.
Founded in 2017, Hims & Hers has onboarded more than 260,000 members for its platform. Hims was initially focused on helping men with issues like erectile dysfunction and hair loss. The company has since grown to include a women’s health division, known as Hers, developed its electronic medical record, and added an online pharmacy. Today, the company works with patients to treat around 100 different healthcare issues, including migraines, stomachache, flu symptoms, anxiety, depression, and more.
According to Hims & Hers, the acquisition of Honest Health will further support its mission of making access to personalized health available to everyone; lay the foundation for future expansion into UK & Europe; add best-in-class distribution capabilities, including pharmaceutical compounding.
A total of 63 digital health companies were acquired in Q1 2021, compared to 52 in Q4 2020, according to Mercom’s Q1 2021 Digital Health Funding and M&A Report. In a large deal, Accolade, a provider of cloud-based, on-demand technology-enabled healthcare concierge services for employers, health plans, and health systems, agreed to acquire telemedicine company Innovation Specialists (dba 2nd.MD) for $460 million. Innovation Specialists reported unaudited revenue of $35 million in 2020.