Hims stock shot higher and then tumbled Tuesday after the telehealth platform announced the pending acquisition of ZAVA, a European digital health platform.
The move will expand Hims & Hers Health's presence in the U.K. and officially launch the company into Germany, France and Ireland, Hims said in a news release.
"This acquisition is expected to accelerate Hims & Hers' vision to deliver the same seamless, personalized care experience it has successfully built in the U.S. to millions more people globally," the company said.
After launching as much as 19%, Hims stock pulled back and closed down 3.6% at 54.73.
Hims Stock Rides Weight-Loss Drugs
Hims has rocketed to stardom amid the fervor over weight-loss drugs. Today, the company partners with Novo Nordisk to offer obesity treatment Wegovy in combination with a Hims & Hers membership. It also sells Eli Lilly's Zepbound on its website.
Chief Executive Andrew Dudum expects the acquisition of ZAVA to "fundamentally transform access to care for millions across Europe."
"Whether in rural towns, vibrant cities, or remote communities across Europe, people battling widespread, often silent chronic conditions like obesity, depression, and more will have access to the personalized, high-quality care they deserve," he said in a written statement.
ZAVA currently has 1.3 million active customers. Last year, its in-house medical team completed almost 2.3 million consultations across the UK, Germany, France and Ireland.
Hims & Hers expects the deal to close in the second half of 2025. The company didn't disclose the deal's terms, but said it will be funded entirely through cash from the balance sheet.
Hims stock ranks third on the IBD 50 list of elite growth stocks and has a perfect IBD Digital Composite Rating of 99. The CR tracks a stock's fundamental and technical metrics, pitting them against all other stocks.
Shares also have a strong Relative Strength Rating of 98, a 1-99 score of a stock's 12-month performance.
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