Headspace and Ginger have completed the merger they first announced in August, digital mental health companies announced Thursday.
Here are five things to know about the newly merged object.
1. Headspace and Ginger, two privately held app-based digital mental health companies that work with employers and insurance plans, have merged into a single company called Headspace Health. The company did not disclose financial details of the merger, but the combined company is valued at $ 3 billion, Headspace and Ginger reported in August.
2. Both startups debuted in 2010. Headspace which raised $ 215.9 million, is a meditation and mindfulness application provider headquartered in Santa Monica, California. Ginger from San Francisco, raised $ 220.7 million, offers access to on-demand mental health services, including behavioral health coaching through text messaging and video visits from therapists and psychiatrists.
3. Headspace Health will combine Headspace for Work and Ginger into one digital mental health service, spanning prevention to treatment, that it will offer to employers. Today Headspace Health covers 100 million lives through contracts with over 2,700 employers and health plans, and through direct subscribers.
4. Employers and insurers are increasingly contracting teletherapy apps that providers claim can reduce stress and improve employee retention. These offerings are part of the growth of the telemedicine and mobile health app subsectors within digital health, which raised $ 6.6 billion and $ 2.3 billion in the first three quarters of 2021, respectively, according to Mercom Capital Group.
5. Russell Glass, the former CEO of Ginger, is the CEO of Headspace Health. Former Headspace CEO Cece Morken is president of the combined company and CEO of Headspace. Headspace Health also named its board of directors, which includes former board members of Headspace and Ginger, as well as two new members.