Eucalyptus $1.6 bn deal sparked by Silicon Valley lunch
Synopsis
Hims & Hers has agreed to acquire Australian digital health company Eucalyptus for up to $1.15 billion. The acquisition includes upfront cash, deferred payments and performance earnouts, and is expected to close mid-2026 subject to regulatory approval. Eucalyptus operates digital clinics across multiple markets with revenue above $450 million.
Eucalyptus will be acquired by Hims & Hers in a deal valued at up to $1.15 billion, expanding digital health services internationally. The Australian telehealth company has annual revenue above $450 million and has served more than 775,000 customers. Closing is expected mid-2026 pending regulatory clearance.
Key Highlights
- Hims & Hers agrees to acquire Eucalyptus for up to $1.15 billion.
- Deal includes cash upfront, deferred payments and performance earnouts.
- Eucalyptus has revenue run rate above $450 million and 775,000+ customers.
- Acquisition expected to close mid-2026 after regulatory approvals.
Telehealth weight-loss unicorn Eucalyptus deal has been formally agreed, with U.S.-based digital healthcare company Hims & Hers Health set to acquire Australian healthcare startup Eucalyptus for up to $1.15 billion (USD), equivalent to about $1.6 billion (AUD). The agreement follows discussions that began during a meeting in Silicon Valley and later progressed into formal negotiations.
Transaction Structure and Financial Terms
Under the terms announced, approximately $240 million in cash will be paid at closing. The remaining consideration includes deferred payments over 18 months and performance-based earnouts extending through early 2029. The acquiring company may settle a significant portion of these payments in either cash or shares. The transaction is expected to close in mid-2026, subject to regulatory approvals and customary conditions.
Eucalyptus reported an annual revenue run rate exceeding $450 million and has served more than 775,000 patients across its digital clinics. Founded in 2019, the company operates subscription-based online healthcare brands focused on weight management, sexual health and mental health. It has established operations in Australia, the United Kingdom, Germany and Japan.
Digital Health Sector Growth
The $1.15 billion acquisition comes amid continued expansion in the digital health sector. Industry estimates indicate that Australia’s digital health market is projected to grow steadily over the next decade, driven by rising use of telehealth services and online prescription platforms. Market research forecasts show sustained compound annual growth as healthcare delivery increasingly shifts toward remote consultations and digital pharmacy models.
Globally, telehealth adoption increased significantly after the COVID-19 pandemic, with regulators allowing wider access to virtual consultations. This structural shift has supported revenue growth among online healthcare platforms.
Operational Impact
Following completion, Eucalyptus is expected to support the acquirer’s international expansion strategy. The transaction will extend its footprint in Australia and Japan while strengthening its presence in European markets.
The Eucalyptus deal ranks among the largest acquisitions involving an Australian digital health company and reflects continued consolidation within the global telehealth industry.
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Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
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