The news: Mental health company Calm is acquiring health tech company Ripple Health Group to replace Calm’s existing employer offering (Calm for Business) and rebrand it as Calm Health.
More on Ripple Health: Ripple makes apps for care coordination and healthcare management. It came out of stealth mode in January 2022 when it launched its first two apps: CareMemo and LikePaper.
What changes will the M&A spur? In addition to transforming Calm’s employer-facing business, Ripple Health will help Calm move beyond sleep, meditation, and relaxation tools and into the broader mental health space.
What does it mean for Calm’s existing employer contracts? While more comprehensive digital mental health tools could help score new employer clients and retain existing ones, Calm also runs the risk of losing contracts if it decides to increase the price of its offerings. Most employers are concerned about keeping up with the rising costs of providing health benefits to their employees.
The bigger picture: M&As in the mental health space are chugging along, as we predicted. And more digital health companies are using M&As and partnerships to offer more specialized mental health offerings.
Dig deeper: Check out our Mobile Health Apps report to learn more about the mHealth landscape.