Hims & Hers to Acquire Eucalyptus in $1.15B Deal
•February 19, 2026
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Why It Matters
The deal accelerates Hims & Hers' global expansion and diversifies revenue, positioning it as a leading telehealth provider while mitigating reliance on the U.S. market amid regulatory challenges.
Key Takeaways
- •Hims & Hers to buy Eucalyptus for up to $1.15B.
- •$240M cash now; rest deferred/earn‑out payments.
- •Adds Australia, Japan, Germany, Canada, UK markets.
- •Eucalyptus brings $450M ARR and five telehealth clinics.
- •Follows recent Novo Nordisk lawsuit over compounded semaglutide.
Pulse Analysis
Hims & Hers' agreement to acquire Eucalyptus marks a decisive step toward building a truly global consumer‑health platform. Eucalyptus operates five specialized digital clinics—including women’s weight‑loss brand Juniper and men’s health services Pilot and Compound—delivering a combined annual revenue run‑rate north of $450 million. By folding these clinics into its portfolio, Hims gains immediate footholds in Australia, Japan, Germany, Canada and the United Kingdom, markets where it previously relied on organic growth or smaller acquisitions. The move accelerates Hims' ambition to become a category leader in telehealth, leveraging local expertise while maintaining a unified brand experience.
The transaction is structured with $240 million in cash at closing and the balance spread across guaranteed deferred payments and performance‑based earn‑outs through early 2029. This staggered approach protects Hims' liquidity, allowing the company to fund the deal largely from existing cash reserves and future U.S. operating cash flows. Analysts will watch how the earn‑out targets align with Eucalyptus' projected triple‑digit ARR growth, as meeting those milestones could unlock additional equity or cash considerations. The acquisition also diversifies revenue streams, reducing reliance on the U.S. market and enhancing margin resilience.
The acquisition arrives amid heightened regulatory scrutiny, highlighted by Novo Nordisk’s recent lawsuit accusing Hims of illegal compounding of semaglutide. While the legal battle poses short‑term reputational risk, the expanded international footprint may dilute exposure to any single jurisdiction’s enforcement actions. Moreover, the combined entity can leverage cross‑selling opportunities across its expanded suite of clinics, potentially offsetting litigation costs with higher lifetime customer value. Investors will gauge whether Hims can translate its aggressive capital‑allocation discipline into sustainable profitability as it scales globally, positioning itself against both traditional pharma and emerging digital‑health rivals.
Deal Summary
Direct-to-consumer virtual care company Hims & Hers announced it has signed an agreement to acquire international digital health platform Eucalyptus for up to $1.15 billion. The transaction includes $240 million cash at closing and the remainder in deferred and earn‑out payments, with the acquisition expected to close in mid‑2026. The deal expands Hims & Hers' global footprint across Australia, Japan, Germany, Canada and the UK.
Article
Source: MobiHealthNews (HIMSS Media)
Direct-to-consumer virtual care company Hims & Hers announced it has signed an agreement to acquire international digital health company Eucalyptus in a deal worth up to $1.15 billion.
Eucalyptus is a global telehealth provider, offering five digital healthcare clinics, including women's weight‑loss company Juniper, men's digital health companies Pilot and Compound, and reproductive healthcare company Kin. Its other clinic Software offers telehealth services and skincare formulas with clinical‑grade ingredients.
Following the acquisition, Eucalyptus' portfolio brands will transition into Hims & Hers.
The deal is valued at up to $1.15 billion, pending standard purchase‑price adjustments. About $240 million will be paid in cash at closing, with the remaining amount made up of guaranteed deferred payments over 18 months and additional earn‑out payments tied to financial‑performance targets through early 2029.
Hims & Hers said it has the option to pay most deferred and earn‑out amounts in either cash or stock, and it plans to fund most of the deal using existing cash and future U.S. operating cash flows.
The U.S.–based company said the acquisition of Eucalyptus will allow it to expand its offerings to Australia and Japan and increase its presence in Germany, Canada and the UK.
“Eucalyptus currently has an annual revenue run‑rate north of $450 million USD. Similar to Hims & Hers, Eucalyptus deploys a rigorous capital‑allocation framework, delivering triple‑digit year‑over‑year ARR growth in each quarter of calendar year 2025, while operating within line of sight of profitability,” the company said in a statement.
“With a strong domestic margin profile, Hims & Hers expects its continued international growth efforts to help drive category leadership in key markets such as Canada, Europe, and Australia, as well as in emerging markets such as Japan. Hims & Hers believes that the acquisition of Eucalyptus will result in category leadership within Australia, as well as bring line of sight to establishing Hims & Hers as a leading telehealth provider in the UK and Germany in the next two years.”
The current CEO of Eucalyptus, Tim Doyle, will become the SVP of International at Hims & Hers.
“With Eucalyptus, we will not only enter new markets, we will expand our ability to serve customers globally, trusting local experts to be a key part of how we transform healthcare into a customer‑first, personalized industry. We believe this puts us on the path to becoming the leading global consumer health platform, where everyone can access the best care for their needs, regardless of where they live,” Andrew Dudum, founder and CEO of Hims & Hers, said in a statement.
The acquisition is expected to close in mid‑2026, pending regulatory approvals and other standard closing conditions.
THE LARGER TREND
Hims & Hers has acquired numerous companies over the last year, including the European telehealth platform Zava, which gave Hims immediate access to the German, French, Irish, and UK markets.
It also purchased the Canadian digital‑health weight‑loss platform Livewell and Boston‑based YourBio Health, a company that pioneered capillary whole‑blood sampling technology.
Earlier this month, pharma giant Novo Nordisk filed a federal lawsuit against Hims & Hers, accusing the company of infringing its U.S. patents by selling unapproved, compounded versions of semaglutide‑based drugs, the active ingredient in popular weight‑loss and diabetes medicines like Wegovy and Ozempic.
Novo alleges these products are unsafe and misleadingly marketed as alternatives to its FDA‑approved therapies. It is seeking damages and a permanent ban on the sale of the allegedly infringing compounded drugs.
Hims & Hers posted its response to the lawsuit on X, stating it is “a blatant attack by a Danish company on millions of Americans” to slash access to compounded medications. The company vowed to fight the suit.
The dispute follows Hims & Hers’ recent attempt to offer a compounded semaglutide pill for weight loss, which it briefly announced and then discontinued amid regulatory pushback, and follows actions from federal regulators referencing potential violations of the Federal Food, Drug, and Cosmetic Act.
The lawsuit followed an announcement made by the pharma giant in June of last year, stating it was terminating its contract with Hims & Hers, due to concerns about Hims & Hers' “illegal mass compounding and deceptive marketing.”
Andrew Dudum posted a response to Novo Nordisk's allegations at the time in a statement on X, saying the company was “disappointed to see Novo Nordisk management misleading the public,” and claiming the pharma giant's commercial team was pressuring Hims & Hers to “control clinical standards and steer patients to Wegovy regardless of whether it was clinically best for patients.”
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