(Bloomberg) -- Headspace Inc., which makes a popular meditation app, will merge with Ginger, a company recently valued at $1 billion by investors including Blackstone Group Inc. -- creating one of the largest startups focused on mental health.
The combined entity will be called Headspace Health, the companies said in a statement Wednesday. Headspace Health will have a valuation of about $3 billion, according to a person familiar with the terms who asked not to be identified because the information is private.
The Ginger chief executive officer, Russell Glass, will lead the company after the merger, and the current CEO of Headspace, CeCe Morken, will become president, according to the statement.
Headspace, founded in 2010, is regularly among the most-downloaded health apps. It offers guided meditation programs and digital sleep aids. Ginger provides mental health coaches that will respond via text at any hour. Ginger's customers include Domino's Pizza Inc., Kaiser Permanente and Pinterest Inc., according to the startup's website.
The coronavirus pandemic was a boon for Headspace. The company reported early this year that the number of new subscribers had doubled from a year before. Headspace has 70 million users, and Ginger's service is available to more than 25 million, the companies said Wednesday.
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