Headspace and Ginger Merge: Introducing Headspace Health

Headspace and Ginger Announce Merger to Form Headspace Health

Headspace, a popular meditation application, revealed this morning its intention to merge with Ginger, an on-demand mental health service. Pending standard regulatory approvals, the two entities will consolidate operations under the new name, Headspace Health.

The resulting organization is projected to have a combined valuation of $3 billion and employ over 800 individuals.

Increased Demand Drives Consolidation

This merger occurs amidst a period of heightened utilization for both companies. The ongoing pandemic has significantly impacted global mental wellbeing, leading many individuals to seek virtual solutions for addressing these challenges.

“A mental health crisis of unprecedented scale is currently unfolding, yet access to affordable and widespread mental healthcare remains limited,” stated CeCe Morken, Headspace CEO.

“As Headspace Health, we aim to fundamentally reshape how access and affordability are addressed, establishing a mental health and wellbeing company that is both highly scalable and demonstrably effective.”

Leadership and Future Strategy

CeCe Morken will assume the role of president at Headspace Health. Russell Glass, currently the CEO of Ginger, will become the CEO of the newly formed company.

“Both Headspace and Ginger recognize that simply increasing the number of therapists or transitioning care online is insufficient to resolve the mental health crisis,” explained Glass.

“This merger allows us to address the complete range of mental health needs – from preventative measures to clinical care – through a single, integrated platform.”

Financial Backing and Market Position

Ginger recently secured $50 million in Series D funding approximately one year ago, followed by a $100 million Series E round this past March, bringing their total funding to over $220 million.

Headspace has also raised substantial capital, totaling $216 million, including a $100.7 million Series C investment last year.

Headspace currently stands as a leading global meditation app, competing primarily with Calm. The merged company intends to expand beyond its core mindfulness offerings.

Expanding Service Scope and Reach

The new entity will focus on “providing 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.”

Importantly, the combined company will diversify its business model, extending beyond direct-to-consumer sales to include corporate and Medicaid-focused plans.

Specific details regarding the financial terms of the deal remain undisclosed. The completion of the merger is anticipated in the fourth quarter of this year.