Hims & Hers (NYSE:HIMS), a leading US-based health and wellness platform, is expanding into Europe via its acquisition of telehealth platform and online pharmacy Zava.
The company said the acquisition will expand its footprint in the UK and launch the company in Germany, France and Ireland, with additional markets expected soon.
Zava serves over 1.3 million active customers across these markets and delivered nearly 2.3 million medical consultations in 2024, offering telehealth services including medical consultations and prescription delivery.
The specific financial terms of the all-cash deal were not disclosed. It is set to close in the second half of 2025, with the company expecting the acquisition to be accretive to its financial performance by 2026.
“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,” Hims & Hers CEO Andrew Dudum said in a statement.
Bank of America analysts’ reaction to the news was initially mixed.
On the positive side, they noted that it will expand HIMS' direct-to-consumer model to major European countries through an asset that is already scaled.
“Zava's customer reviews on the Trustpilot website are also generally positive, with a 4.1 out of 5.0 rating with nearly 6,900 reviews,” they added.
“Zava's service portfolio is similar to Hims & Hers and spans weight management, women's and men's health, sexual health, general medicine and skin and hair care.”
But, the analysts highlighted that Hims & Hers’ growth in the US began to slow dramatically in March, raising questions about its future growth prospects. Bloomberg Second Measure data incidates total orders grew 3% to 4% year-over-year in the second quarter through to mid-May, below 8% in Q1 and an average of 18% to 19% in 2024.
“Expanding internationally while the US business slows is a risk and may reflect product saturation and rising competition in the US markets,” the analysts wrote.
They added the US healthcare technology that have expanded internally have generally had little success in these markets given significantly different regulatory environments in each different international jurisdiction.
“These are our initial views and are subject to change as we learn more about the Zava asset, international strategy, and future trends in the US markets,” the analysts wrote.
They maintained their ‘Undperform’ rating on Hims & Hers and a $28 price target. Shares of HIMS dropped around 3.8% in Tuesday afternoon trading.