Hims, a direct-to-consumer telehealth startup, is close to securing a deal to go public through a merger with special-purpose acquisition company Oaktree Acquisition Corporation, according to a September 25 report in Bloomberg.
According to people familiar with the deal, the merger could be announced next week and would place Hims’ value at around $1.6 billion. Oaktree is in talks with investors to raise $75 million to help fund the transaction. Representatives for the two organizations did not comment on the situation.
Hims launched in 2017 with a value already pegged at $1.1 billion. The company started out by selling erectile dysfunction and hair loss medications online, offering virtual doctor consultations and prescriptions. In 2018, Hims launched Hers, a service that offers women access to telehealth services including birth control pills.
As demand for telehealth soared during the beginning of the COVID-19 pandemic and it became clear that mental health was becoming a real issue for many people, Hims expanded into urgent care and mental health services. The company also began selling home COVID-19 tests for people experiencing symptoms of the illness.
Hims has raised $197 million from venture investors so far. In July, the company partnered with pop star Jennifer Lopez and former New York Yankees baseball player Alex Rodriguez to promote the company’s healthcare and mental health services to people in underserved communities, particularly communities of color.
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Read the Bloomberg article here.