Meditation app Calm is acquiring Ripple Health Group, a San Francisco-based healthcare technology company. The terms of the deal were not disclosed. Calm says the acquisition will accelerate its mental health care ambitions. Following the acquisition, Ripple Health Group CEO David Ko will take on the role of Calm co-CEO, alongside Michael Acton Smith. Calm co-founder Alex Tew will move from co-CEO to executive chairman.
Founded in 2019, Ripple connects users with proper healthcare options and builds solutions that address pressing health problems. Ripple’s first two products, which launched last month, focus on aging in society and alleviating the burden of caregiving for both professional and non-professional caregivers.
The Ripple team will now join Calm and focus on building Calm Health, which will replace the company’s existing employer offering, Calm for Business. Calm Health is expected to launch soon, with the aim of supporting mental health across the care spectrum. The Ripple team will be tasked with building out a suite of Calm Health solutions that integrate into current healthcare technology and are both secure and simple to use. Calm says Ripple will also continue to build products that aim to reduce the burden of caregiving.
“As an advisor to Calm since 2019, I’ve witnessed firsthand the team’s ability to pioneer the future of mental health, redefining both the category and the distribution channel,” said Calm’s new co-CEO, David Ko, in a statement. “Calm is on a mission to make the world happier and healthier. I can’t think of a better fit for Ripple’s team and technology. We’re incredibly honored to join the company. I’m excited to work alongside Michael to bring Calm to healthcare.”
Before joining Ripple, Ko was the president, COO and board member of Rally Health, a digital health company that develops mobile solutions that aim to make it easier for consumers to access care.
“David’s business acumen, operational excellence and proven record scaling healthcare companies will be invaluable for Calm as we enter into new ventures and shape the future of the category,” said Calm co-CEO and co-founder Michael Acton Smith, in a statement.
Calm’s acquisition comes a few weeks after it made its first foray into physical activity and video content with the launch of its new Daily Move feature. The feature guides users through simple exercises to get them moving. Calm sees the new feature as an entry point into mindful content for people who find traditional meditation a difficult place to start. The company also recently introduced a new “Premium Family” subscription plan that includes up to six accounts. The new offering is available globally for $99.99 per year, whereas a premium individual plan costs $69.99 per year.
Calm, along with other meditation apps, has fared well during the ongoing pandemic and has seen a surge in users. The company boasts more than 100 million downloads to date, and says it averages 100,000 new users daily. In December 2020, Calm raised $75 million in Series C funding, pushing the company’s valuation to $2 billion. Prior investor Lightspeed Venture Partners led the round.