Hims & Hers acquires Zava, adds 1.3M customers in Europe

In a bold move to solidify its international presence, Hims & Hers Health announced Tuesday it will acquire Zava, a prominent European telehealth platform. The acquisition marks a pivotal step in the U.S.-based company's strategy to expand beyond domestic borders and tap into growing demand for accessible healthcare solutions across Europe.

CEO Andrew Dudum emphasized the strategic nature of the acquisition, calling it a catalyst for broader international growth. “We’re excited to take this moment to really accelerate both the European expansion, but also use this platform as an accelerant as we move into more markets,” Dudum told CNBC.

The acquisition is expected to close by mid-year, with specific financial terms to be disclosed in upcoming filings. Following the announcement, Hims & Hers shares rose roughly 5% in premarket trading.

A Leap Forward in European Reach

This acquisition builds on Hims & Hers’ initial foray into international markets, which began in 2021 with the purchase of London-based Honest Health. By acquiring Zava, the company will now extend its footprint into Ireland, France, and Germany—adding roughly 1.3 million new customers to its existing 2.4 million user base, a near 50% boost in active subscriptions.

Founded in 2011 by CEO David Meinertz, Zava has established itself as a key player in European telehealth. Meinertz will continue to play a central role post-acquisition, taking on the position of general manager of Hims & Hers' international business.

Addressing Strain in Europe’s Public Health Systems

Meinertz noted that the European healthcare landscape—characterized by robust but often overwhelmed public systems—is ripe for disruption. “The medications are priced more competitively than in the U.S. so more people can actually afford it, and we are seeing a huge demand,” he said. “The demand is increasing with additional strains on the statutory systems that telehealth can alleviate.”

In the European Union, statutory healthcare systems are generally taxpayer-funded and provide universal coverage, but growing demand and resource limitations have opened the door for digital health providers to offer timely, affordable alternatives.

Brand Transition and Long-Term Strategy

Though Zava will initially retain its branding, the platforms are expected to transition to the Hims & Hers identity over the next few quarters. The acquisition reflects a broader strategic confidence from Hims & Hers, even as other companies adopt a more cautious stance amid economic uncertainty.

Dudum believes the European market presents unique advantages, particularly in terms of pharmaceutical pricing and reduced complexity around insurance and pharmacy benefit management. “The ability to bring accessible, personalized treatments to customers overseas may be equal or easier than what we see domestically,” he said.

With the Zava deal, Hims & Hers not only broadens its geographical scope but also positions itself as a significant player in shaping the future of digital healthcare in Europe.