Hims & Hers Health
announced Tuesday it will acquire European telehealth platform Zava in its push to expand globally.
“We’re excited to take this moment to really accelerate both the European expansion, but also use this platform as an accelerant as we move into more markets,” Hims & Hers CEO Andrew Dudum told CNBC in an interview.
The deal is set to close by mid-year, according to the company’s press release. While terms of the acquisition were not disclosed, the company said details of the transaction will be available in financial disclosures at closing.
Shares of Hims & Hers gained about 5% in premarket trading Tuesday.
Dudum spoke at length during the company’s first-quarter earnings call in mid-May about the company’s commitment to global expansion.
“Early traction in the UK gives us confidence that we can scale out platform globally and extend out mission to help people around the world,” Dudum said at the time.
Hims first expanded its global footprint to the United Kingdom in 2021 when it acquired London-based vertical health platform Honest Health.
The deal to acquire Zava will expand the company’s services to Ireland, France and Germany and will grow its active customer base by roughly 50%, adding 1.3 million customers to Hims’ existing base of 2.4 million subscribers.
Zava CEO David Meinertz, who launched the platform in 2011, said the deal will provide relief to an otherwise overwhelmed European healthcare system.
“The medications are priced more competitively than in the U.S. so more people can actually afford it and we are seeing a huge demand,” said Meinertz. “The demand is increasing with additional strains on the statutory systems that telehealth can alleviate.”
In the EU, the statutory healthcare system generally refers to the publicly funded health insurance and healthcare delivery systems within individual member states. These systems are universal, providing comprehensive coverage to citizens and residents, although access and coverage can vary.
After the acquisition closes, Zava platforms will maintain their branding for a “few quarters” before being rebranded as Hims & Hers, Dudum said. Meinertz will become a general manager of the international business.
Dudum noted that while some companies are pulling back or withholding growth outlook given macroeconomic uncertainty, he has full confidence that pushing forward is the right decision.
“The pricing on pharmaceuticals is so much more consumer advantageous in broader Europe relative to the U.S.,” said Dudum. “The ability to bring accessible, personalized treatments to customers overseas may be equal or easier than what we see domestically just given the pricing and complexities of insurance and [pharmacy benefit managers] and the pricing power that exists here.”
