Hims CEO Andrew Dudum. Photo credit: Christopher Michel on Flickr, under Creative Commons license

Hims, a telehealth upstart, has announced that it’s reached a formal deal to go public by merging with blank-check firm Oaktree Acquisition Corp, with the announcement corroborating a previous report of the company being on the cusp of a public market debut. Hims’ merger with Oaktree Acquisition Corp is expected to add up to $280 million of cash to the company’s balance sheet, consisting of funding already secured by Oaktree, the blank-check target, and an additional $75 million to be raised from investors. The merger is expected to give Hims an initial valuation of $1.6 billion on the public markets.

Hims as a company was launched in 2017. It’s a fairly popular telehealth platform that connects consumers to licensed healthcare professionals and facilitates access to treatments for ailments that are usually stigmatized, an example being sexual dysfunction. Hims is available across all 50 states in the US and currently has roughly 260,000 subscribers across the country. The company says its annual revenues have doubled over the last two years.

Hims as a private company has raised nearly $200 million in funding and was valued at $1.1 billion from its most recent funding round (PitchBook data). Among the company’s backers include notable names like Thrive Capital, Founders Fund, SV Angel, Redpoint, and DCM Ventures.

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