Shares of Hims & Hers Health Inc. (HIMS) are soaring 5.13% in pre-market trading on Wednesday, following the company's announcement of its acquisition of London-based startup Zava. This strategic move is set to bolster the telehealth platform's international presence and expand its service offerings.

The acquisition, for an undisclosed amount, will enable Hims & Hers to launch its services in Germany, France, and Ireland, significantly expanding its reach to more international patients. Zava, backed by equity firm HPE Growth, has a strong presence in these markets and the UK, serving over 1 million customers with medical consultations and prescription medicine delivery, including popular weight-loss drugs Mounjaro and Wegovy.

This expansion comes at a crucial time for Hims & Hers, as the company adapts to recent regulatory changes in the United States regarding weight-loss drug manufacturing. The acquisition is viewed as a strategic move to diversify its growth opportunities, with plans to introduce personalized skin care, weight loss, and other offerings to these new markets. Additionally, the company will provide options for patients to interact with healthcare providers in local languages, further enhancing its service accessibility.

Adding to the positive sentiment, Needham & Co. has maintained its "Buy" rating on Hims & Hers Health, signaling continued confidence in the company's growth prospects. As the telehealth sector continues to evolve, HIMS appears well-positioned to capitalize on global opportunities and expand its market presence.