Digital mental health giants Ginger and Headspace have officially completed their merger in a deal that would have values the company combined to $ 3 billion.
Now operating as Headspace Health, the new entity brings together Headspace’s direct-to-consumer mindfulness and meditation app with Ginger’s on-demand mental health coaching and video therapy digital platform.
By joining forces in a single platform, companies will target the consumer, employer and health plan markets to improve behavioral health and overall user well-being.
In addition to sharing the close of its merger, Headspace Health welcomed new members to its board of directors. Myrna Soto, a tech and cybersecurity industry veteran, and Julia Cheek, founder and CEO of Everly Health, round out the company’s nine-person board of directors.
“It is an honor to join Headspace Health’s new board of directors at this critical time when millions of people around the world are in desperate need of accessible, high-quality mental health care,” Cheek said in a statement. .
WHY IT IS IMPORTANT
The emergence of Headspace Health is important to help meet the growing demand for mental health services that is not being met by traditional methods of delivering care.
For example, only 26.9% of the needs for mental health professionals in the United States are met, according to Kaiser Family Foundation The data. This gap in care exists despite the demand for behavioral health services which increased by 52% during the COVID-19 pandemic, according to the National Council for Mental Well-being.
To bridge this gap, Headspace Health combines Ginger and Headspace for Work into one offer for employers. Through the bundled product, employees will have access to 24-hour behavioral health coaching, therapy and psychiatry; a collection of self-guided mindfulness experiences; educational sessions led by experts; and personalized care pathways coordinated by a care team.
The company also recently collaborated with the traffic and navigation app Waze to publish a Headspace experience for drivers. Intended to help commuters improve their mental state on the go, the offering includes the voice of Mindfulness Teacher and Headspace Director of Meditation, Eve Lewis Prieto, who guides users through sessions based on the mood such as Aware, Bright, Hopeful, Joyful and Open.
Additionally, drivers will be able to stream a personalized Spotify playlist with music and content from Headspace, which is also available through the Waze audio player.
THE BIGGEST TREND
Ginger and Headspace first announced their merger in August. Both companies caught the attention of investors ahead of their deal, closing each of the $ 100 million financing rounds.
Neither company is new to mergers and acquisitions. In March 2020, Ginger announced that it had acquired the technology assets of LiveBetter, another digital behavioral health company. In 2018, Headspace purchased the Alipine.AI voice-activated AI system for an undisclosed amount.
It’s also not the first time that a mental health company and a meditation company have teamed up. Last October, digital behavioral health company Lyra Health entered into an agreement with the meditation app Calm to offer Calm’s services to its customers.