meditation app Calm is acquiring Ripple Health Group, a San Francisco-based health technology company. Terms of the agreement were not disclosed. Calm says the acquisition will accelerate his mental health ambitions. Following the acquisition, Ripple Health Group CEO David Ko will assume the role of co-CEO of Calm, alongside Michael Acton Smith. Calm co-founder Alex Tew will move from co-CEO to executive chairman.
Founded in 2019, Ripple connects users to appropriate healthcare options and creates solutions that address pressing health issues. Ripple’s first two products, which released last month we focused on aging in society and easing the burden of care for 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 spectrum of care. The Ripple team will be tasked with creating a suite of Calm Health solutions that integrate with current healthcare technology and are safe and simple to use. Calm says Ripple will also continue to build products that aim to reduce the care burden.
“As a consultant to Calm since 2019, I have witnessed firsthand the team’s ability to pioneer the future of mental health, redefining the category and distribution channel,” Calm’s new co-CEO David Ko said in a statement. “Calm’s mission is to make the world happier and healthier. I can’t think of a better fit for Ripple’s team and technology. We are incredibly honored to join the company. I am excited to work alongside Michael to bring Calm to health.”
Prior to joining Ripple, Ko was President, COO and Board Member of Rally Healtha digital health company that develops mobile solutions that aim to facilitate consumers’ access to care.
“David’s business acumen, operational excellence and proven record-breaking healthcare companies will be invaluable to Calm as we enter new ventures and shape the future of the category,” said Calm’s co-CEO and co-founder. , Michael Acton Smith, in a statement.
The acquisition of Calm comes just weeks after making 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 move them around. 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, while a premium individual plan costs $69.99 per year.
Calm, along with other meditation apps, has done well during the ongoing pandemic and has seen a surge in users. The company has over 100 million downloads to date and claims to have an average of 100,000 new users daily. In December 2020, Calm raised $75 million in Series C funding, bringing the company’s valuation to $2 billion. Previous investor Lightspeed Venture Partners led the round.