An App for mental wellness and meditation Headspace on August 25, announced plans to merge with Ginger, an on-demand digital mental health service. The two firms will merge to establish Headspace Health, which will serve consumers, employers, and health insurance because of the agreement.
- The aggregate value of the new business would be $3 billion, with over 800 workers. The deal is set to finalize in the fourth quarter of 2021.
- Headspace, which was founded in 2010, provides mindfulness training and is regarded as one of the earliest meditation apps. The company has previously teamed with healthcare providers such as Spectrum Health in Grand Rapids, Mich., and Kaiser Permanente in Oakland, Calif., on employee and patient benefits.
- Ginger also was founded in 2010 and offers its members mental healthcare services including behavioral health coaching, therapy, and psychiatry via smartphone.
- Ginger is reimbursed as a virtual in-network benefit through fully insured, self-insured and government-funded programs such as Cigna and Medicaid program AmeriHealth Caritas District of Columbia.
- After the merger, Ginger CEO Russell Glass will become CEO of Headspace Health, and Headspace CEO CeCe Morken will continue to be CEO of Headspace while also serving as president of Headspace Health.