Hims & Hers ZAVA Acquisition Deal Expands Its Market Opportunity By $52 Billion: Analyst

Hims & Hers Health, Inc. HIMS on Tuesday agreed to acquire ZAVA, a European digital health platform. The deal terms were not disclosed.

The acquisition consideration will be 100% cash, funded from the company’s balance sheet at closing. The acquisition is expected to close in the second half of 2025.

The move will expand Hims & Hers’ footprint in the United Kingdom and officially launch the company into Germany, France, and Ireland, with more markets anticipated soon.

In the coming quarters, Hims & Hers will establish its own branded presence in these European markets, leveraging the ZAVA platform.

Also Read: Hims & Hers Stock Pulls Back After Strong Q1 Earnings, 115% Gain Over Past Month

The deal will significantly strengthen Hims & Hers’ international footprint. Serving more than 1.3 million active customers, ZAVA’s in-house medical team delivered nearly 2.3 million consultations in 2024 across the U.K., Germany, France, and Ireland.

Hims & Hers will soon introduce a new, personalized dimension of digital health in Europe, providing individuals with access to care tailored to their needs and goals across dermatology, weight loss, sexual health, and mental health. While Hims & Hers will share more about the offerings and their rollout in the coming months, they expect the deal to be accretive by 2026.

“We are positively inclined by the deal and believe HIMS’ existing solutions are highly applicable to similar demographics in Europe, underscoring the potential for international markets to be a durable growth vector longer term,” a Needham analyst wrote on Wednesday.

Analyst Ryan Macdonald reiterated the Buy rating for the stock, raising the price forecast from $61 to $65.

While HIMS did not disclose any financial metrics for ZAVA, Needham estimates ZAVA revenues in the range of $100 million annually.

“We conservatively estimate the weight loss opportunity alone in ZAVA’s existing markets to expand HIMS’ Total Addressable Market by $52.1 billion,” analyst Macdonald wrote.

Price Action: HIMS stock is down 2.24% at $53.51 at the last check on Wednesday.

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