Hims & Hers Health announced on Tuesday its strategic decision to acquire the European telehealth platform Zava, marking a significant step in its efforts to expand globally. During an interview with CNBC, Hims & Hers CEO Andrew Dudum expressed enthusiasm about this acquisition, stating, "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."
The acquisition deal is expected to close by mid-year, according to the company’s official press release. While the specific financial terms of the acquisition have not been disclosed, Hims & Hers has assured stakeholders that comprehensive details will be available in upcoming financial disclosures at the time of closing.
During the company’s first-quarter earnings call held in mid-May, Dudum elaborated on Hims & Hers' commitment to global expansion. He highlighted early traction in the UK, stating, "Early traction in the UK gives us confidence that we can scale out our platform globally and extend our mission to help people around the world."
Hims & Hers first ventured into the international market in 2021 with its acquisition of Honest Health, a London-based vertical health platform. The acquisition of Zava will further extend the company's services to key European markets, including Ireland, France, and Germany. This strategic move is projected to grow Hims & Hers' customer base by approximately 50%, adding an impressive 1.3 million customers to its existing 2.4 million subscribers.
Zava's CEO, David Meinertz, who founded the platform in 2011, remarked that this acquisition will provide much-needed relief to an overwhelmed European healthcare system. He noted, "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." Meinertz emphasized that as the demand grows, the additional strains on statutory systems could be alleviated by the services offered through telehealth.
In the European Union, the term "statutory healthcare system" refers to the publicly funded health insurance and healthcare delivery systems within individual member states. These systems are designed to be universal, providing comprehensive coverage to citizens and residents, although access and coverage can vary significantly from one country to another.
Once the acquisition is finalized, Zava's platforms will maintain their branding for a few quarters before transitioning to the Hims & Hers brand, as confirmed by Dudum. Meinertz will take on the role of general manager of the international business, further strengthening the company’s leadership in the telehealth sector.
Dudum expressed his unwavering confidence in the company’s growth strategy, especially considering the current macroeconomic climate. He remarked, "While some companies are pulling back or withholding growth outlook, I have full confidence that pushing forward is the right decision." He added that the pricing of pharmaceuticals in Europe is significantly more consumer-friendly compared to the U.S., making it easier to deliver accessible, personalized treatments to customers overseas.
As Hims & Hers Health continues to enhance its global footprint, the acquisition of Zava stands as a pivotal move in transforming the telehealth landscape in Europe and beyond.
