"The company announced it is acquiring Eucalyptus, a leading digital health player based in Australia, in a deal worth up to $1.15 billion. The move aims to accelerate global expansion by entering Australia and Japan while strengthening its presence in the U.K., Germany, and Canada. It also seeks to change the narrative surrounding its business, which is facing both regulatory and legal liability pressure from the federal government, as well as a patent infringement lawsuit from Novo Nordisk ( ) for its compounded GLP-1 drugs."
"The deal - set to close around mid-2026 (pending approvals) - keeps things flexible financially: About $240 million in cash upfront. Guaranteed deferred payments over the next 18 months. Extra performance-based earnouts tied to milestones, stretching into early 2029. These later pieces can be paid in cash or stock, giving Hims & Hers room to maneuver without straining its balance sheet."
"Eucalyptus is no small add-on. It brings $450 million in annualized revenue - growing at triple-digit rates - and adds expertise in consumer healthcare. Hims & Hers plans to leverage Eucalyptus's infrastructure to scale personalized care offerings, including telehealth and wellness products, across markets in Australia, the U.K., and Germany, with expansion underway in Japan and Canada. Once the deal closes, Hims & Hers plans to weave in Eucalyptus's brands, tech, and local know-how."
Hims & Hers is acquiring Eucalyptus for up to $1.15 billion to expand into Australia and Japan and strengthen positions in the U.K., Germany, and Canada. The acquisition aims to offset regulatory and legal pressures, including a patent-infringement lawsuit over compounded GLP-1 drugs. Hims shares have fallen about 77% from their 52-week high amid investor concern that other segments cannot replace weight-loss revenue. The deal is expected to close around mid-2026 and includes roughly $240 million cash upfront, deferred guaranteed payments, and performance-based earnouts through 2029 payable in cash or stock. Eucalyptus brings $450 million in annualized revenue, rapid growth, and telehealth infrastructure to scale personalized wellness offerings.
Read at 24/7 Wall St.
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