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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 earnout payments tied to financial performance targets through early 2029.
Hims & Hers said it has the option to pay most deferred and earnout 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's asking the court for 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. It 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 2025, stating it was terminating its contract with Hims & Hers, due to concerns about Hims & Hers' "illegal mass compounding and deceptive marketing."
Dedum posted a response to Novo Nordisk's allegations at the time in a statement on X, stating the company was "disappointed to see Novo Nordisk management misleading the public," claiming the pharma giant's commercial team was pressuring the company to "control clinical standards and steer patients to Wegovy, regardless of whether it was clinically best for patients."
