U.S.-based digital health platform Hims & Hers Health, Inc. has announced an agreement to acquire Australian telehealth company Eucalyptus for approximately $1.15 billion. The transaction is being viewed as the largest deal in Hims & Hers’ history and a significant step toward becoming a global consumer health platform.
Deal Structure: How Will the Payment Be Made?
According to company disclosures:
- Around $240 million will be paid in cash upfront.
- The remaining amount will be performance-based, payable over the next 18 months subject to agreed targets.
- The transaction is subject to customary regulatory approvals before closing.
This structured payment approach allows Hims & Hers to expand while managing financial risk, tying a significant portion of the payout to future performance.
Company Overview: What Do Both Companies Do?
Hims & Hers Health, Inc.
Hims & Hers operates a direct-to-consumer digital health platform offering:
- Online doctor consultations
- Prescription medication delivery
- Weight management programs
- Mental health services
- Hair loss and sexual wellness treatments
Since going public in 2021, the company has aggressively expanded its offerings, aiming to make healthcare more accessible and affordable through a subscription-based digital model.
Eucalyptus
Eucalyptus is an Australia-based telehealth company focused on:
- Personalized health programs
- Long-term care management
- Virtual medical consultations
Its portfolio includes well-known brands such as:
- Juniper – Women’s health and weight management
- Pilot – Men’s health solutions
- Kin – Fertility and family planning
The company reportedly serves more than 775,000 customers and operates at an estimated $450 million revenue run rate.
Why Is This Acquisition Significant?
1️⃣ Rapid Expansion Beyond the U.S.
Until now, Hims & Hers has primarily focused on the U.S. market. Through Eucalyptus, the company gains an established presence in:
- Australia
- United Kingdom
- Germany
- Canada
- Japan
This geographic diversification reduces reliance on a single market and opens up new revenue streams.
2️⃣ Complementary Business Models
Hims & Hers has traditionally followed a “pharmacy-first” model, centered on prescription fulfillment and subscription medication services.
In contrast, Eucalyptus operates a “care-first” model, emphasizing long-term patient engagement and personalized health programs.
The combination of these models positions the merged entity to offer a more comprehensive, end-to-end digital healthcare ecosystem.
3️⃣ Positive Investor Reaction
Following the announcement, shares of Hims & Hers saw an uptick, reflecting investor optimism. Market participants believe the acquisition could:
- Strengthen long-term revenue growth
- Enhance brand positioning internationally
- Reduce regulatory and competitive concentration risk in the U.S.
Strategic Context: Why Now?
In recent months, the U.S. healthcare market has faced increased scrutiny and competition, particularly around GLP-1 weight-loss medications.
Analysts suggest that by acquiring Eucalyptus, Hims & Hers is:
- Expanding into new international markets
- Diversifying revenue sources
- Strengthening long-term operational resilience
This move could transform the company from a primarily U.S.-focused telehealth provider into a truly global consumer health platform.
Potential Benefits and Challenges
Potential Benefits:
- Stronger global brand positioning
- Expanded customer base across developed markets
- Platform and technology integration opportunities
Potential Challenges:
- Navigating varying healthcare regulations across countries
- Integrating technology systems and operations
- Aligning brand strategy across regions
What’s Next?
If regulatory approvals are secured on schedule, the deal could close within 2026. Post-closing, the company is expected to focus on:
- Technology platform integration
- Brand harmonization
- Launch of new cross-market services
Outcome
The acquisition of Eucalyptus by Hims & Hers represents more than just an M&A transaction—it marks a strategic pivot toward global leadership in digital healthcare.
As digital health continues to gain momentum worldwide, this deal positions Hims & Hers to compete on an international scale. If integration efforts succeed, the company could emerge as one of the leading global players in the consumer digital health industry over the coming years.
Source: Hims news
