Meditation App Headspace to Merge With Blackstone-Backed Ginger

Photographer: Joe Maher/Getty Images
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Headspace Inc., which makes a popular meditation app, will merge with Ginger, a company recently valued at $1 billion by investors including Blackstone Group Inc. -- creating one of the largest startups focused on mental health.

The combined entity will be called Headspace Health, the companies said in a statement Wednesday. Headspace Health will have a valuation of about $3 billion, according to a person familiar with the terms who asked not to be identified because the information is private.