Shares of Hims & Hers Health Inc. (HIMS) surged 5.14% in pre-market trading on Tuesday, following the company's announcement of its plans to acquire Zava, a prominent digital health platform in Europe. This strategic move is set to accelerate Hims & Hers' expansion into major European markets, including the UK, Germany, France, and Ireland.

The all-cash acquisition, expected to close in the second half of 2025, marks a significant step in Hims & Hers' global growth strategy. By leveraging Zava's established presence and technology, Hims & Hers aims to extend its personalized digital healthcare services across dermatology, weight loss, sexual health, and mental health in these new markets. The company anticipates the deal to be accretive by 2026, signaling potential long-term value for shareholders.

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 pre-market stock price surge.