Mental health and meditation app Headspace announced plans Aug. 25 to merge with on-demand digital mental health service Ginger.
Seven details:
1. Under the deal, the two companies will merge to form Headspace Health, which will serve consumers, employers and health plans.
2. The new organization would have a combined value of $3 billion and more than 800 employees, TechCrunch reported.
3. Founded in 2010, Headspace offers mindfulness training and is known as one of the first meditation apps. The company has previously partnered with healthcare providers including Grand Rapids, Mich.-based Spectrum Health and Oakland, Calif.-based Kaiser Permanente on offerings for employees and patients.
4. Ginger also was founded in 2010 and offers its members mental healthcare services including behavioral health coaching, therapy and psychiatry via smartphone.
5. Ginger is reimbursed as a virtual in-network benefit through fully insured, self-insured and government-funded programs such as Cigna and Medicaid program AmeriHealth Caritas District of Columbia, according to the news release.
6. Upon completion of the merger, Ginger CEO Russell Glass will become CEO of Headspace Health, and Headspace CEO CeCe Morken will remain chief executive of Headspace and take on the additional role of president of Headspace Health.
7. The transaction is expected to close in the last quarter of 2021.