Headspace and Ginger, two of the most prominent companies in the increasingly competitive mental health space, on Wednesday announced plans to merge.
The new company, called Headspace Health, will have a reported value of $3 billion, placing it in the top echelon of companies vying to own significant chunks of the mental health market.
As investors have thrown huge sums into mental health, there’s been an increasing sense that consolidation must be on the horizon. As a pair, Headspace and Ginger offer complementary services that will allow the combined company to address a wide spectrum of patient needs, potentially making it more appealing to the employers and health plans that buy their services.
Headspace, which sells directly to consumers as well as to businesses, is focused on self-directed meditation and other mindfulness. It’s become a popular way for companies to offer a basic mental health resource to workers.
Ginger also offers self-guided treatment in addition to text-based coaching and video-based therapy and psychiatry. It’s inked some important deals recently, including with Cigna, which will reimburse Ginger as in-network treatment.
The combined companies, which were both founded in 2010, now claim to cover 100 million people internationally.
Both companies have seen growth as employers race to find ways to deliver better mental health benefits to workers, a trend that’s increased as the pandemic laid bare the gap between people who have common conditions like anxiety and depression and those who can access treatment.