Digital mental health titans Ginger and Headspace have officially closed their merger in a deal that reportedly values the combined company at $3 billion.
Now operating as Headspace Health, the newly formed entity brings together Headspace’s direct-to-consumer mindfulness and meditation app with Ginger’s on-demand digital mental health coaching and video therapy platform.
By their joining forces into one platform, the companies will target the consumer, employer and health plan markets to improve users’ behavioral health and overall wellbeing.
In addition to sharing the closing of its merger, Headspace Health welcomed new members to its board of directors. Myrna Soto, a technology and cybersecurity industry veteran, and Julia Cheek, founder and CEO at Everly Health, round out the company’s nine-person board.
“It’s an honor to join the new Headspace Health Board of Directors at this critical moment in time when millions around the world are in desperate need of accessible, high-quality mental healthcare,” Cheek said in a statement.
WHY THIS MATTERS
The emergence of Headspace Health is significant to help address the increasing demand for mental health services that isn’t being met by traditional care delivery methods.
For example, only 26.9% of the need for mental health professionals in the U.S. is met, according to Kaiser Family Foundation data. That gap in care exists despite the demand for behavioral health services increasing by 52% during the COVID-19 pandemic, according to the National Council for Mental Wellbeing.
In an effort to close that gap, Headspace Health is combining Ginger and Headspace for Work into a single offering for employers. Through the bundled product, employees will get access to around-the-clock behavioral health coaching, therapy and psychiatry; a collection of self-guided mindfulness experiences; expert-led educational sessions; and personalized care journeys coordinated by a care team.
The company also recently collaborated with the traffic and navigation app Waze to release a Headspace experience for drivers. Intended to help commuters improve their mental state while on the road, the offering features the voice of Headspace’s mindfulness teacher and director of meditation, Eve Lewis Prieto, who leads users through mood-based sessions such as Aware, Bright, Hopeful, Joyful and Open.
In addition, drivers will be able to stream a custom Spotify playlist with music and content from Headspace, which is also available via the Waze Audio Player.
THE LARGER TREND
Neither company is new to the M&A space. In March 2020, Ginger announced that it had acquired fellow digital behavioral-health company LiveBetter’s technology assets. In 2018, Headspace purchased voice-enabled AI system Alipine.AI for an undisclosed sum.
This also isn’t the first time a mental health company and a meditation company have teamed up. Last October, digital behavioral-health company Lyra Health inked a deal with meditation app Calm to offer its customers Calm’s services.