Meditation app Headspace and video-based therapy services provider Ginger announced that they have agreed to merge into one digital mental health and wellbeing company.
The combined entity will be called Headspace Health and it will have a valuation of about $3 billion, according to a person familiar with the terms.
Founded in 2010 by Andy Puddicombe and Richard Pierson, Headspace is one of the most downloaded meditation apps worldwide with about 70 million users globally. Headspace reported earlier this year that the number of new subscribers has doubled compared to a year ago, mainly due to the coronavirus pandemic.
According to the joint statement, Ginger CEO Russell Glass will lead the new company after the merger, while current Headspace CEO CeCe Morken will become president.
“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 Morken.
“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.”
Ginger, which provides members with access to unlimited self-guided care and 24/7 on-demand and scheduled coaching, as well as video-based therapy and psychiatry support, has now over 25 million users in over 50 countries worldwide. The company announced a $100 million Series E this March, bringing its total funding amount to $220 million.
“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.”
The deal is expected to close in the last quarter of 2021.