Hims & Hers Acquires European Telehealth Platform Zava

Introduction to Hims & Hers Health Expansion

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 Acquisition Details

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. 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 U.K. 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.

Global Expansion

Hims first expanded its global footprint to the U.K. 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 health-care system.

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 European Union, the statutory health-care system generally refers to the publicly funded health insurance and health-care delivery systems within individual member states. These systems are universal, providing comprehensive coverage to citizens and residents, although access and coverage can vary.

Post-Acquisition Plans

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 their 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."

Conclusion

The acquisition of Zava by Hims & Hers Health marks a significant step in the company’s global expansion plans. With the addition of 1.3 million customers and expansion into new markets, Hims & Hers is well-positioned to increase its presence in the global telehealth market. The company’s commitment to providing accessible and personalized healthcare services will likely continue to drive growth and innovation in the industry.

FAQs

Q: What is the significance of Hims & Hers Health acquiring Zava?
A: The acquisition marks a significant step in Hims & Hers Health’s global expansion plans, allowing the company to expand its services to Ireland, France, and Germany, and grow its active customer base by roughly 50%.
Q: What is the current state of the European healthcare system?
A: The European healthcare system is generally universal, providing comprehensive coverage to citizens and residents, although access and coverage can vary. The system is currently experiencing strains, which telehealth can help alleviate.
Q: What are the plans for Zava after the acquisition?
A: After the acquisition closes, Zava platforms will maintain their branding for a "few quarters" before being rebranded as Hims & Hers. Zava CEO David Meinertz will become a general manager of the international business.
Q: How does the pricing of pharmaceuticals in Europe compare to the US?
A: The pricing of pharmaceuticals in Europe is more consumer-advantageous than in the US, making it easier for Hims & Hers to provide accessible and personalized treatments to customers overseas.