Hims & Hers Expands into European Market with Zava Acquisition

Telehealth company Hims & Hers Health, Inc. has announced its intention to acquire European digital healthcare provider Zava in an all-cash deal, marking a significant step in the company's international expansion strategy. The acquisition, expected to close in the second half of 2025, will bring Hims & Hers to over a million customers in the European market and launch its services for the first time in Germany, France, and Ireland, while also expanding its presence in the UK.

Strategic Expansion and Market Growth

The acquisition of Zava comes on the heels of Hims & Hers raising $1 billion through convertible senior notes in mid-May, which founder and CEO Andrew Dudum had indicated would be used for international expansion and artificial intelligence implementation. This move aligns with the company's broader strategy to tap into the growing demand for personalized digital healthcare services globally.

Andrew Dudum emphasized the universal nature of this demand, stating, "The demand for simpler, more personalized healthcare is universal. 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."

Operational Integration and Service Offerings

Hims & Hers plans to leverage Zava's European operations, care network, and technology to offer what it describes as a "personalized dimension of digital health in Europe." The company will continue to offer its flagship products for sexual health, hair loss, mental health, and weight loss, while also promising new features for its European customers to be announced later in the year.

To maintain a personalized experience for patients, Hims & Hers will offer access to local healthcare providers who speak the local language in Great Britain, Ireland, France, and Germany. This approach aims to address the needs of individuals in various settings, from rural towns to vibrant cities and remote communities across Europe.

Financial Implications and Market Response

The all-cash deal will be funded from Hims & Hers' balance sheet at closing, with the company projecting that the acquisition will increase its earnings per share by 2026. However, the announcement comes amid some challenges for Hims & Hers, including a recent 4% reduction in its workforce and a temporary drop in stock price following the FDA's ban on compounded copies of Wegovy, Novo Nordisk's GLP-1 receptor agonist.

Despite these hurdles, the company remains optimistic about its growth prospects. David Meinertz, co-founder and CEO of ZAVA, expressed enthusiasm for the merger, stating, "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."