(Corrects to “Wednesday” from “Tuesday” in first paragraph) Aug 25 (Reuters) - Meditation app Headspace and video-based therapy services provider Ginger said on Wednesday they would merge to create a large and affordable digital mental health and wellbeing platform. With the COVID-19 pandemic taking a toll on people’s mental health, digital health firms have seen a surge in demand for their services and are trying to boost their offerings. The deal follows a $100 million investment in Ginger led by investment firm Blackstone in March. Terms of the merger were not disclosed by the companies. Headspace has about 70 million users globally and provides mindfulness and mental training services to more than 2,200 companies, including Starbucks and Adobe. Ginger provides behavioral health coaching, among other things. “Through this merger, we can uniquely tackle the full spectrum of mental health needs - from prevention to clinical care - all from one integrated platform,” said Russell Glass, chief executive officer of Ginger in a statement. Russell Glass is set take on the role of CEO of the combined company, to be called Headspace Health, upon the closing of the merger, expected in the last quarter of the year, the companies said. Reporting by Amruta Khandekar; Editing by Amy Caren Daniel Our Standards: The Thomson Reuters Trust Principles.