Hims & Hers snaps up Eucalyptus in $1.6bn deal
Eucalyptus, the Australian digital health company behind weight-loss brands Pilot and Juniper, is being acquired by New York-listed Hims & Hers Health (NYSE: HIMS) in a deal valued at up to US$1.15 billion ($1.62 billion). The transaction marks one of the largest exits in Australian startup history and turns Eucalyptus into the international division of the US telehealth giant.
The all-cash deal delivers a major payday for co-founder and CEO Tim Doyle, 35, along with venture backers Blackbird Ventures, Airtree Ventures and Woolworths’ W23 Ventures. For employees holding vested shares, the transaction is expected to be the largest ESOP payout in Australian startup history.
Transaction snapshot
Deal value: Up to US$1.15 billion ($1.62 billion). Approximately US$240 million ($338 million) payable in cash at close, with the remainder in guaranteed deferred payments over 18 months and earn-out payments tied to financial targets through early 2029.
Deal multiples: Approximately 2.6x annualised revenue run-rate (based on US$450 million ARR). The deal represents a significant step-up from Eucalyptus’s $560 million valuation in 2023 and the $1.37 billion valuation being sought in a late-2025 funding round that was shelved after the Hims & Hers approach.
Deal type: 100% acquisition (all-cash, with deferred and earn-out components). Eucalyptus will become the international division of Hims & Hers. Expected to close mid-2026, subject to regulatory approvals including ACCC and FIRB.
San Francisco-based Hims & Hers, which has a market capitalisation of approximately US$3.6 billion ($5.1 billion), said it would acquire the seven-year-old Australian company in a deal structured in two parts. Around US$240 million ($338 million) will be paid at initial close. The balance comes via guaranteed deferred payments over the following 18 months and earn-out payments contingent on meeting financial targets through early 2029. Hims & Hers retains the option to settle most deferred and earn-out payments in cash or stock, and plans to finance the initial outlay with existing cash on hand and future US operating cash flows.
Founded in 2019 by Tim Doyle, Benny Kleist, Alexey Mitko and Charlie Gearside, Eucalyptus operates a portfolio of direct-to-consumer healthcare brands. These include men’s health platform Pilot (covering weight loss, erectile dysfunction, hair loss and premature ejaculation), women’s weight-loss and menopause brand Juniper, fertility service Kin, prescription skincare brand Software, and men’s health clinic Compound. The company has served more than 775,000 customers across Australia, the United Kingdom, Germany, Japan and Canada.
Eucalyptus reported an annualised revenue run-rate north of US$450 million ($634 million) and said it was operating within sight of profitability. Its most recent statutory accounts show it more than halved its after-tax loss to $15.2 million in the 2024 financial year. Revenue growth exceeded 120% year-on-year in 2024.
Doyle, who owns approximately 10% of Eucalyptus — valuing his stake at roughly $163 million — will become Senior Vice President of International at Hims & Hers following completion. He will oversee operations across Australia, the UK, Germany, Japan and Canada. The Eucalyptus portfolio of brands is expected to transition into the Hims & Hers platform over time.
The deal caps a rapid fundraising trajectory for Eucalyptus. Blackbird Ventures led the pre-seed round in January 2019 and the seed round later that year. Subsequent raises included an $8 million Series A in May 2020 (led by W23), a $30 million Series B in July 2021 (led by NewView Capital), a $60 million Series C in January 2022 (led by BOND Capital), and a $50 million round in April 2023 that valued the business at $560 million. In November 2025, the AFR’s Street Talk column reported Eucalyptus was working to close a round that would have valued it at $1.37 billion. That process was put on hold after the Hims & Hers approach.
The acquisition is not without context. Hims & Hers has faced a turbulent period in its US operations. In early 2026, the company withdrew a US$49 compounded oral semaglutide pill — a copy of Novo Nordisk’s blockbuster weight-loss drug Wegovy — following regulatory warnings from the FDA and a patent infringement lawsuit from Novo Nordisk. Hims & Hers shares have declined 48% over the past month in the wake of that legal threat. The Eucalyptus acquisition offers geographic diversification beyond the US and reduces reliance on any single product category.
This is not Hims & Hers’ first international deal, but it is its largest. In June 2025, the company acquired European digital health platform ZAVA for approximately US$1.2 billion in an all-cash deal, expanding its footprint across the UK, Germany, France and Ireland. It also acquired Canadian telehealth company Livewell. Combined with Eucalyptus, these acquisitions position Hims & Hers as one of the most significant global telehealth platforms.
Eucalyptus has not been free of controversy either. The company has attracted regulatory scrutiny over the rigour of its prescriptions and marketing of weight-loss medications. It switched to selling new-brand weight-loss drugs in 2025 ahead of a ban on compounded versions of Ozempic. In January 2026, the AFR reported complaints from nurses in the Philippines who alleged they were being overworked following increased performance benchmarks. Eucalyptus clinical director Matt Vickers said the targets were focused on patient care, not volume.
The transaction is subject to customary closing conditions, including regulatory approvals from the ACCC and FIRB, and is expected to close in mid-2026.
