Hims & Hers Health, Inc. (NYSE: HIMS) shares climbed 7.8% Thursday morning following the company's announcement that it has entered into a definitive agreement to acquire Eucalyptus, a digital health operator with a footprint in Australia, the United Kingdom, Germany, Japan, and Canada.
The proposed transaction is structured with a maximum consideration of up to $1.15 billion USD. At closing, Hims & Hers will pay approximately $240 million in cash. The balance of the purchase price is arranged as deferred payments over an 18-month period, with additional earnout payments contingent on Eucalyptus meeting specified financial targets through early 2029.
Summary
This acquisition is designed to extend Hims & Hers' global reach while maintaining financial flexibility. Eucalyptus operates consumer-facing brands including Juniper and Pilot, has served more than 775,000 customers, and reports an annual revenue run-rate that exceeds $450 million USD. The company has posted triple-digit year-over-year revenue growth in each quarter of calendar year 2025 and has been operating near profitability.
Key points
- Hims & Hers' stock reaction - shares rose 7.8% on the transaction announcement, reflecting a positive near-term market response.
- Transactional structure - roughly $240 million in cash at closing, with deferred payments over 18 months and earnouts tied to performance through early 2029.
- International expansion - Eucalyptus provides immediate entry into five overseas markets and contributes established consumer brands and revenue scale.
Andrew Dudum, founder and CEO of Hims & Hers, framed the deal in terms of global demand for simplified and personalized healthcare: "Healthcare challenges are global, and so is the demand for simpler, transparent, and more personalized healthcare," he said. "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."
Leadership changes tied to the acquisition are planned: following the close, Tim Doyle, currently CEO of Eucalyptus, will assume the role of Senior Vice President of International at Hims & Hers and will oversee the company's international operations. Over time, the Eucalyptus portfolio of brands will be integrated into Hims & Hers' broader brand architecture.
The companies expect the transaction to close during the middle of calendar year 2026, contingent on regulatory approvals and other customary closing conditions. Hims & Hers intends to fund most of the purchase price using existing cash and future operating cash flows generated by its U.S. business.
Risks and uncertainties
- Regulatory approvals and customary closing conditions may delay or prevent completion of the transaction, affecting timing and expected benefits - this has implications for the healthcare and financial markets.
- Earnout payments are contingent on Eucalyptus meeting future financial targets through early 2029, introducing performance risk that could alter ultimate consideration and integration outcomes - this affects corporate finance and investor expectations.
- Financing the acquisition largely from existing cash and future U.S. operating cash flows may constrain Hims & Hers' financial flexibility depending on U.S. business performance - relevant to capital markets and healthcare operators.
The agreement positions Hims & Hers to scale internationally while retaining a structured payment approach aimed at preserving near-term liquidity.