Meditation app Headspace this morning announced plans to merge with on-demand mental health service Ginger. Barring unforeseen regulatory roadblocks, the two companies will combine to form Headspace Health. The new organization would sport a combined value of $3 billion and a headcount of more than 800.
The merger comes during accelerated usage of both parties, as a seemingly endless pandemic has put a strain on mental health across the globe and many have turned to virtual solutions to address the growing problem.
… Ginger announced a $50 million Series D roughly one year ago and a $100 million Series E this March, bringing its total funding north of $220 million. Headspace, meanwhile, has raised $216 million, courtesy of last year’s $100.7 million Series C. Headspace is one of the top global meditation apps, along with chief competitor, Calm. The new company would find it pushing well beyond its current mindfulness focus to, “provide the full spectrum of proven, effective virtual support – from mindfulness and meditation, to text-based behavioral health coaching, to video-based therapy and psychiatry – for all types of patient populations.”
Headspace, a global leader in mindfulness and meditation, and Ginger, a leader in on-demand mental healthcare, today announced they have entered into a definitive agreement to merge. The combined entity, Headspace Health, will offer the world’s most accessible and comprehensive digital mental health and wellbeing platform … According to the World Health Organization, close to 1 billion people worldwide live with a mental disorder, and more than 75% of people worldwide with mental, neurological, and substance use disorders receive no treatment for their condition at all. In a recent study, nearly half of adults in the U.S. reported symptoms of depression or anxiety during the pandemic. In the workplace, both employees and their employers pay the price: Research from the American Psychiatric Association shows that employees with unresolved depression experience a 35% reduction in productivity, resulting in a $210 billion annual economic loss in the U.S. due to absenteeism, reduced productivity, and medical costs.
“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.”
The News in Context:
- Meditation app Headspace raises $93 million in equity and debt to accelerate clinical validation and geographic expansion
- The landscape of digital mental health apps: huge unmet needs, quality concerns, app stores asked to ensure transparency
- The National Academy of Medicine (NAM) shares discussion paper to help empower 8 billion minds via the ethical adoption of digital mental health and neurotech
- Ten neurotechnologies about to transform brain enhancement & health