San Francisco-based Hims & Hers Health, Inc. Has reached a definitive agreement to acquire Eucalyptus, an Australian digital health company, in a deal valued at up to $1.15 billion, according to announcements made on . However, reporting from the Australian Financial Review indicates the deal is valued at more than $1.6 billion. The discrepancy in valuation is not immediately clear.
The acquisition marks a significant expansion for Hims & Hers, a New York-listed company specializing in telehealth and personalized healthcare, into international markets. Eucalyptus operates several consumer-focused brands, including weight-loss program Juniper and men’s telehealth brand Pilot, and has served over 775,000 customers, according to Hims & Hers. The deal will transform Eucalyptus into Hims & Hers’ international division, providing a foothold in Australia and Japan, and strengthening its presence in the United Kingdom, Germany, and Canada through existing partnerships.
Eucalyptus has quickly become a major player in the Australian health technology sector. Founded seven years ago, the company offers a range of digital health services, extending beyond weight loss and men’s health to include fertility services through its Kin brand. The sale represents a substantial return for the company’s co-founder and venture capital investors.
The $1.15 billion deal, as stated by Hims & Hers, will be structured with approximately $240 million payable in cash upon closing, which is expected to occur in the middle of calendar year 2026. The Australian Financial Review reports a valuation exceeding $1.6 billion.
The timing of the acquisition comes amidst legal challenges for Hims & Hers. The company is currently involved in a lawsuit with Danish drugmaker Novo Nordisk following a crackdown by the U.S. Food and Drug Administration that forced the withdrawal of its newly launched, lower-priced alternative to Novo’s Wegovy weight-loss drug. This legal battle underscores the regulatory complexities within the rapidly evolving weight-loss market, a sector where both companies are heavily invested.
The acquisition of Eucalyptus is expected to accelerate Hims & Hers’ vision of becoming a leading global consumer health platform. By integrating Eucalyptus’ established brands and customer base, Hims & Hers aims to broaden its reach and offer a more comprehensive suite of personalized healthcare solutions internationally. The move reflects a broader trend within the telehealth industry of companies seeking to expand their geographic footprint and diversify their service offerings.
Charlie Gearside, a former advertising executive, is poised to benefit significantly from the sale, according to Mumbrella. His involvement highlights the growing intersection between marketing expertise and the digital health sector.
The deal’s financial implications extend beyond Hims & Hers and Eucalyptus. Capital Brief notes that venture capital firms, including Blackbird Ventures, are set to realize substantial returns on their investments in Eucalyptus. The exit provides a positive signal for the Australian venture capital landscape, demonstrating the potential for significant returns in the health technology sector.
The acquisition is subject to customary closing conditions, including regulatory approvals. While the exact details of the integration plan remain to be seen, the deal signals a strategic shift for Hims & Hers towards international expansion and a broader focus on digital health solutions. The differing valuations reported by Hims & Hers and the Australian Financial Review warrant further scrutiny as the deal progresses.
The success of the integration will likely depend on Hims & Hers’ ability to effectively leverage Eucalyptus’ existing infrastructure and brand recognition in international markets, while navigating the regulatory challenges inherent in the healthcare industry. The company’s ongoing legal dispute with Novo Nordisk will also be a key factor to watch as it pursues its global expansion strategy.
