By Christy Santhosh
Feb 19 (Reuters) – Hims & Hers Health said on Thursday it will acquire Australian digital health company Eucalyptus in a deal valued at up to $1.15 billion, as the U.S. telehealth firm pushes into international markets to expand its personalized-care business.
Shares of Hims & Hers rose 7% premarket trading.
The deal gives Hims & Hers a foothold in Australia and Japan while deepening its presence in the United Kingdom, Germany, and Canada through partnerships with established regional operators.
Hims & Hers will pay about $240 million in cash at closing, with the remainder structured as deferred payments over 18 months and performance-based earnouts through early 2029.
The deal comes as the company navigates significant regulatory and legal headwinds in its core U.S. market. Drugmaker Novo Nordisk sued it following an FDA crackdown that forced Hims & Hers to pull a $49 compounded version of Novo’s blockbuster weight-loss drug Wegovy.
“While this deal looks like it fits and hopefully should scale to profitability within HIMS, the go/no-go on oral Wegovy and now the future path for the entire compounded GLP-1 category will remain the dominant theme for HIMS until it is addressed” said Leerink analyst Michael Cherny.
Eucalyptus operates several consumer-focused brands globally, including weight-loss program Juniper and men’s telehealth brand Pilot, and has served more than 775,000 customers, according to Hims & Hers.
“Eucalyptus looks like it is in the same general markets as HIMS but also appears to be more focused on disease prevention and care coordination than a pharmacy-first approach” Cherny added.
Hims & Hers has been accelerating its international expansion in response to domestic pressures. Last year, Hims acquired London-based startup Zava for an undisclosed amount, allowing it to launch its offerings in Germany, France and Ireland and reach more international patients.
(Reporting by Christy Santhosh in Bengaluru; Editing by Tasim Zahid)
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