Hims & Hers rises as Zava deal paves way for European expansion

Shares of telehealth co Hims & Hers Health HIMS.N rise 17.3% to $66.59

Says will acquire London-based startup Zava for an undisclosed amount, allowing it to launch its offerings in Germany, France and Ireland

"Hims & Hers will establish its own branded presence, leveraging the robust ZAVA platform, in each of these European markets in the coming quarters"- HIMS

To fund the acquisition through cash on its balance sheet at closing; the deal is expected to close in the second half of this year

Zava provides medical consultations and delivery of prescription medicines - including weight-loss drugs Mounjaro and Wegovy - to its more than 1 million customers across the United Kingdom, Germany, France and Ireland

We do see some execution and integration risk associated with the deal, brokerage Leerink Partners says

"All-in, we see positives that can arise from the acquisition, but are wary of potential slippages that could also occur"- Leerink Partners

Including session moves, stock has more than doubled YTD