SAN FRANCISCO: Hims & Hers Health announced Tuesday it will acquire European telehealth platform Zava as part of its push to expand globally.
The deal, expected to close by mid-year, will broaden the company’s reach into Ireland, France and Germany, growing its active customer base by roughly 50%. Financial terms were not disclosed, but details will be included in financial filings upon closing, the company said.
“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,” CEO Andrew Dudum told CNBC.
Hims & Hers first expanded internationally in 2021 with its acquisition of London-based Honest Health. The Zava deal will add 1.3 million customers to its existing base of 2.4 million subscribers.
Dudum emphasized the company’s global ambitions during its first-quarter earnings call in May, citing early success in the U.K. as a sign of potential abroad.
Zava CEO David Meinertz, who founded the platform in 2011, said the acquisition could help ease pressure on Europe’s public healthcare systems.
“The medications are priced more competitively than in the U.S., so more people can actually afford them, and we are seeing huge demand,” Meinertz said. “Telehealth can alleviate some of the strain on statutory systems.”
In the European Union, statutory healthcare refers to publicly funded universal coverage, though access varies by country.
After the acquisition, Zava will retain its branding for a “few quarters” before transitioning to the Hims & Hers name. Meinertz will become general manager of the international business.
Despite economic uncertainty, Dudum expressed confidence in the expansion, citing more consumer-friendly drug pricing in Europe compared to the U.S.
“The ability to bring accessible, personalized treatments to customers overseas may be equal or easier than what we see domestically,” he said.
Hims & Hers shares were unchanged in after-hours trading Tuesday.