Ginger and Headspace have entered into a definitive agreement to merge and form Headspace Health, which will be the world’s most accessible, comprehensive digital mental health platform.
Terms of the deal were not disclosed.
The new company will reach nearly 100 million people across more than 190 countries through its direct-to-consumer, enterprise and health plan businesses. It will boast more than 2,700 enterprise and health plan partners globally.
Based in San Francisco, Ginger is an on-demand virtual behavioral health care system with a valuation north of $1 billion. It works with employers and other partners to deliver coaching, therapy and psychiatry to members via text and video, in addition to offering users a library of self-guided content and skill-building activities.
Meanwhile, Headspace is based in Santa Monica, California. It offers digital mindfulness and meditation services to over 70 million users in 190 countries, with its services available to over 2,000 companies. Like Ginger, Headspace is a behavioral health unicorn, with a valuation of more than $1 billion.
Together, the new combined company will have a value of $3 billion and an employee headcount of more than 800.
“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,” Russell Glass, CEO of Ginger, said in a press release announcing the news. “Through this merger, we can uniquely tackle the full spectrum of mental health needs — from prevention to clinical care — all from one integrated platform.”
Glass will become the CEO of Headspace Health after the merger closes. Meanwhile, Headspace CEO CeCe Morken will become president of the combined company.
“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,” Morken said in the press release. “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.”
The deal is expected to close in Q4 of 2021.