Hims and Hers, telehealth brands that sell products for hair loss and sexual wellness, have inked a deal to go public with a $1.6 billion valuation.
The combined business has entered into a merger agreement with Oaktree Acquisition Corp. that will take the company public. The enterprise value of the deal is 8.9 times estimated 2021 revenue, and 12.2 times estimated 2021 gross profit.
Hims and Hers run gender-oriented telehealth platforms that provide products for erectile dysfunction and birth control, respectively, as well as more general skin care and hair products. The brands have executed more than two million consultations and have more than 260,000 subscriptions.
In a statement, founder Andrew Dudum said the deal will allow Hims and Hers to work toward becoming “the front door to the health care system, serving as the first stop for people’s health and wellness needs across hundreds of conditions.” The brands intend to expand to more categories moving forward, he noted.
As part of the deal, management and existing equity holders will roll “nearly” 100 percent of their equity into the company. Backers include Founders Fund, Forerunner Ventures, IVP, Redpoint Ventures, Thrive Capital, McKesson Ventures and the Canadian Pension Fund.
The deal is expected to close in the fourth quarter of 2020.
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