Headspace and Ginger have completed a merger they first publicized in August, the digital mental health companies announced Thursday.
Here are five things to know about the newly combined entity.
1. Headspace and Ginger, two privately held app-based digital mental health firms that work with employers and health plans, have merged into a single company dubbed Headspace Health. The company did not disclose the financial details of the merger, but the combined entity is valued at $3 billion, Headspace and Ginger said in August.
2. Both startups debuted in 2010. Headspace, which raised $215.9 million, is a meditation and mindfulness app provider headquartered in Santa Monica, California. San Francisco-based Ginger, which raised $220.7 million, offers access to on-demand mental healthcare services, including behavioral health coaching via text message and video visits with therapists and psychiatrists.
3. Headspace Health will combine Headspace for Work and Ginger into one digital mental health service spanning from prevention to treatment that it will market to employers. Headspace Health today covers 100 million lives through contracts with more than 2,700 employers and health plans and via direct-to-consumer subscribers.
4. Employers and insurers are increasingly contracting with teletherapy apps that vendors claim can reduce stress and improve employee retention. These offerings are part of growing the telehealth and mobile health app subsectors within digital health, which raised $6.6 billion and $2.3 billion, respectively, in the first three quarters of 2021, according to data from Mercom Capital Group.
5. Russell Glass, formerly CEO of Ginger, is Headspace Health's CEO. Former Headspace CEO CeCe Morken is president of the combined company and CEO of the Headspace division. Headspace Health also named its board of directors, which includes former Headspace and Ginger board members and two new members.
