Ginger and Headspace Will Merge to Meet Escalating Global Demand for Mental Health Support
Headspace Health will offer the world’s most accessible, comprehensive digital mental health platform.
The combined entity will reach nearly 100 million lives across 190+ countries through direct-to-consumer business and 2,700+ enterprise and health plan partners around the globe.
August 25, 2021 06:00 AM Eastern Standard Time
SANTA MONICA and SAN FRANCISCO--(BUSINESS WIRE)--Headspace, a global leader in mindfulness and meditation, and Ginger, a leader in on-demand mental healthcare, today announced they have entered into a definitive agreement to merge. The combined entity, Headspace Health, will offer the world’s most accessible and comprehensive digital mental health and wellbeing platform. By coming together at a critical moment of global need, Headspace Health will democratize mental healthcare to provide the full spectrum of affordable and comprehensive support for everyone.
According to the World Health Organization, close to 1 billion people worldwide live with a mental disorder, and more than 75% of people worldwide with mental, neurological, and substance use disorders receive no treatment for their condition at all. In a recent study, nearly half of adults in the U.S. reported symptoms of depression or anxiety during the pandemic. In the workplace, both employees and their employers pay the price: Research from the American Psychiatric Association shows that employees with unresolved depression experience a 35% reduction in productivity, resulting in a $210 billion annual economic loss in the U.S. due to absenteeism, reduced productivity, and medical costs.
“We are witnessing a mental health crisis unlike anything we’ve experienced in our lifetimes, yet the majority of mental healthcare today is neither broadly accessible nor affordable,” said CeCe Morken, CEO of Headspace. “Together, as Headspace Health, we will address the systemic challenges of access and affordability in a fundamentally different way by creating the world’s most holistic, scalable, and effective mental health and wellbeing company.”
Headspace, founded in 2010 by Andy Puddicombe and Richard Pierson, is known for being one of the first meditation apps in the world and remains a leader in mindfulness and mental training. Founded in 2010 at the Massachusetts Institute of Technology (MIT) by Karan Singh, co-founder and chief operating officer, Ginger offers its members convenient, high-quality mental healthcare - including behavioral health coaching, therapy, and psychiatry - right from a smartphone. Together as Headspace Health, the two companies will serve consumers, employers, and health plans. Their combined expertise in consumer brand, evidence-based interventions, and technology will help improve resilience, reduce stress, and provide treatment to the millions of people experiencing mental health symptoms, from anxiety to depression to more complex diagnoses.
Since their beginnings, Headspace and Ginger have relied on research and evidence to drive the development of their products and services to deliver tools and interventions rooted in behavioral science.
Both companies have created brand experiences that people love, earning the trust, respect, and loyalty of their members to bring them the mental health support that they need.
Upon merging, the combined company will use technology to scale affordable, accessible care to people around the world, reaching nearly 100 million lives across all 50 U.S. states and in 190+ countries worldwide.
“Headspace and Ginger have a shared recognition that the mental health crisis can’t be solved by simply hiring more therapists or moving care online,” said Russell Glass, CEO of Ginger. “Through this merger, we can uniquely tackle the full spectrum of mental health needs - from prevention to clinical care - all from one integrated platform."
Upon close of the merger, Russell Glass, CEO of Ginger, will take on the role of CEO of Headspace Health. CeCe Morken will remain CEO of Headspace and take on the additional role of President for the combined entity. This transaction is subject to regulatory approval and customary closing conditions and is expected to close in the last quarter of 2021. Terms of the transaction were not disclosed.
Executive leaders from Headspace and Ginger will host a joint webcast on September 22, 2021 at 4:00pm EDT, where you can learn more about how meditation, mindfulness, and on-demand mental healthcare have helped leading employers and health plans to create healthier and more productive populations. To register, please visit: https://bit.ly/2WeeiEz.
Headspace was created with one mission in mind: to improve the health and happiness of the world. Reaching 70 million users in 190 countries, Headspace was one of the first meditation apps in the world and remains a leader in mindfulness and mental training. Headspace is committed to advancing the field of mindfulness through clinically validated research, with one of the largest research pipelines of any digital health and wellness company. Headspace operates a B2B business (Headspace for Work) to offer its mindfulness products and services to more than 2,200 companies, such as Starbucks, Adobe, Hyatt, and Unilever, to help them build healthier, more productive cultures and higher performing organizations. Headspace supports government entities like New York State and the UK’s National Health Service (NHS) to offer digital mental health tools. Headspace partners with many of the world’s most-recognizable brands, including Apple, Sesame Street, Spotify, Amazon, and Nike as well as Netflix for a three part mindfulness series that premiered in 2021. Headspace has been recognized as TIME100’s Most Influential Companies of 2021, Fast Company’s 10 most innovative social good companies of 2021 and World's Most Innovative Companies. Other accolades include Apple's Best of 2018, Samsung's Best of 2019 and one of CB Insights' top digital health companies, along with being selected for seven Webby Awards in podcasts, health and fitness. For more information please visit us at www.headspace.com, or follow us on Facebook, Twitter and Instagram.
At Ginger, we believe that everyone deserves access to incredible mental healthcare. The Ginger app provides members with access to unlimited self-guided care and 24/7 on-demand and scheduled coaching, as well as video-based therapy and psychiatry support. Ginger’s care providers work as a team to deliver high-quality care in a value-based model that helps members get better faster, and reduces costs for everyone. Over 25 million people in over 50 countries around the world have access to Ginger through leading employers, health plans, and partners. Ginger is recognized by The World Economic Forum as a Technology Pioneer, by Fast Company as one of the Most Innovative Companies in Healthcare, and by UCSF Digital Health Awards as 2020’s leading Mental Health Company. Learn more about our vision to build a world where mental health is never an obstacle at ginger.com or find us on Twitter at @CareByGinger.