Hims & Hers (HIMS.US) spent over $1 billion to acquire the Australian digital health company Eucalyptus.

Hims & Hers Health (HIMS.US) announced that it will acquire Australian digital health services provider Eucalyptus in a cash-and-stock deal worth up to $1.15 billion. Following this news, the company's stock price rose by about 7% in pre-market trading on Thursday. Based in Sydney, Eucalyptus has annual revenue exceeding $450 million and is the largest digital health services provider in Australia. Hims expects that this acquisition will help expand its presence in the Australian and Japanese markets, as well as further grow its business in the UK, Germany, and Canada. Under the terms of the deal, Hims will pay nearly $240 million in cash upon completion of the transaction. Eucalyptus may also receive deferred performance consideration over the next 18 months and additional payments based on financial targets being met by early 2029. Hims has the option to pay most of the deferred and performance consideration in cash or stock. It is understood that Hims, based in San Francisco, California, primarily sells weight loss drug formulations. The funds for this transaction are expected to come mainly from the company's existing cash reserves and operating cash flow from its US operations. The deal is expected to be completed by mid-2026.