Hims & Hers Health Inc. (HIMS) stock surged 13.39% in Tuesday's pre-market trading following the company's announcement of plans to acquire Zava, a prominent digital health platform in Europe. This strategic move marks a significant step in Hims & Hers' international expansion, paving the way for its entry into key European markets including the UK, Germany, France, and Ireland.

The all-cash acquisition, expected to close in the second half of 2025, will allow Hims & Hers to leverage Zava's established presence and technology to extend its personalized digital healthcare services across various segments, including dermatology, weight loss, sexual health, and mental health. Zava currently serves more than 1 million active customers across these markets, providing a solid foundation for Hims & Hers' European growth strategy.

This expansion comes at a crucial time for Hims & Hers, as the company navigates challenges in its U.S. operations, including recent regulatory changes affecting weight-loss drug manufacturing. The move into European markets could provide new growth opportunities and diversify the company's revenue streams. Investors appear optimistic about the acquisition's potential to bolster Hims & Hers' position in the rapidly evolving digital health landscape, as reflected in the significant pre-market stock price surge. The company expects the deal to be accretive by 2026, signaling potential long-term value for shareholders.