Tuesday, online health and wellness company Hims & Hers announced its intent to acquire European digital healthcare provider Zava in an all-cash deal. It’s part of a broader effort for the telehealth brand to expand internationally.
The company raised $1 billion in mid-May through convertible senior notes, which founder and CEO Andrew Dudum said would help the company expand internationally and implement artificial intelligence. The company wrote at the time it did not have any definitive agreements for material acquisitions.
The acquisition of Zava, announced just over two weeks later, will bring Hims & Hers to over a million customers in the European market and launch it for the first time in Germany, France and Ireland. The acquisition will also expand Hims & Hers’ presence in the UK.
Hims & Hers will offer access to local healthcare providers that speak the local language in Great Britain, Ireland, France and Germany to maintain a personalized experience for patients.
The all-cash deal is expected to close in the second half of 2025, funded from the company's balance sheet at closing. Hims & Hers touts that the acquisition will increase its earnings per share by 2026.
The company will leverage Zava’s European operations, care network and technology. It aims to offer a “personalized dimension of digital health in Europe,” the company said in a press release.
“The demand for simpler, more personalized healthcare is universal,” Dudum said in a statement. “By leveraging ZAVA's established European presence, cutting-edge technology, and deep customer understanding, we're poised to fundamentally transform access to care for millions across Europe. Whether in rural towns, vibrant cities, or remote communities across Europe, people battling widespread, often silent chronic conditions like obesity, depression, and more will have access to the personalized, high-quality care they deserve.”
Hims & Hers will continue to offer its flagship products for sexual health, hair loss, mental health and weight loss. The company also teased the addition of new features for its European customers, to be announced later in the year.
“Wherever you live, the need is the same: healthcare that’s personal, trustworthy and fast. By joining forces with Hims & Hers, we can put that standard within reach of millions more people across Europe,” David Meinertz, co-founder and CEO of ZAVA, said in a statement. “Together we’ll pair ZAVA’s trusted clinical services, established footprint, and deep understanding of the European healthcare landscape with the Hims & Hers experience to make affordable access to high-quality, personalized care the rule, not the exception. I’m thrilled to be working with Andrew and his team. It’s still day one for digital healthcare, and I can’t wait to see what we’ll achieve for patients in the years ahead.”
Hims & Hers laid off 4% of its staff, 68 employees on Friday, according to a report by Bloomberg. The layoffs followed a 14% drop in the company’s stock price in the days following the implementation of the Food and Drug Administration’s ban on compounded copies of Wegovy, Novo Nordisk’s GLP-1, on May 22.
The stock price has recovered slightly, now at a 6% decline from the effective date of the ban.