What You Should Know
- The Deal: Hims & Hers Health, Inc. has entered into a definitive agreement to acquire Eucalyptus , an international digital health company, in a transaction valued at up to $1.15 billion.
- The Target: Eucalyptus is a powerhouse in the Australian market and operates consumer brands like Juniper and Pilot. The company has served over 775,000 customers and currently boasts an annual revenue run-rate (ARR) north of $450M.
- The Strategy: The acquisition is a massive geographic land grab. It immediately positions Hims & Hers to expand into Australia and Japan, while deepening its existing footprint in the UK, Germany, and Canada.
Eucalyptus by the Numbers
Founded in 2019, Eucalyptus operates a “house of brands” model—including names like Juniper and Pilot—that closely mirrors the aesthetic and consumer-first approach of Hims & Hers.
But Eucalyptus is more than just a brand match; it is a revenue engine.
- ARR: The company currently has an annual revenue run-rate north of $450 million.
- Growth: It has delivered triple-digit year-over-year ARR growth in each quarter of 2025.
- Scale: It has served over 775,000 customers and facilitated nearly two million consultations.
Furthermore, Eucalyptus brings critical local regulatory expertise. It is the first Australian telehealth business to receive accreditation from the Australian Council on Healthcare Standards (ACHS), proving its clinical rigor in a highly regulated market.
“Healthcare challenges are global, and so is the demand for simpler, transparent, and more personalized healthcare,” said Andrew Dudum, founder and CEO of Hims & Hers. “With Eucalyptus, we will not only enter new markets, we will expand our ability to serve customers globally.”
Financing the $1.15 Billion Deal
Despite the billion-dollar price tag, Hims & Hers has structured the transaction to protect its balance sheet. Upon closing (expected in mid-2026), Hims & Hers will pay approximately $240 million in cash. The remainder of the $1.15 billion valuation consists of guaranteed deferred payments over the following 18 months, plus earnout payments tied to specific financial targets through early 2029. Crucially, Hims & Hers retains the option to settle the majority of these deferred and earnout payments in either cash or stock, financing the initial outlay with existing cash on hand.
Leadership Changes
As part of the integration, Tim Doyle, current CEO and co-founder of Eucalyptus, will transition into the role of SVP of International at Hims & Hers, overseeing the combined company’s global business operations.
“We’ve spent 7 years helping customers around the world find the care that fits them, and we believe today’s news will be part of accelerating the movement towards affordable healthcare for everyone,” said Doyle.
