Background: Eucalyptus was founded seven years ago by early employees of Koala with a plan to build a house of digital health brands. Its portfolio includes Pilot for men’s health, Kin for women’s health, Software for skincare and Juniper, which focuses on weight-loss treatments like Ozempic. The company raised $8 million (Series A), $30 million (Series B) and $60 million (Series C) across funding rounds, reaching a $560 million valuation.

What happened: Eucalyptus had been targeting a $1.3 billion raise this year. But before that raise, Hims & Hers Health stepped in. It will acquire Eucalyptus in an all-cash deal worth more than $1.6 billion, with plans to make it the foundation of its international division.

What else: The acquisition includes a $240 million USD payment when the deal is closed, then deferred payments in cash or stock over 18 months, as well as additional earnout payments based on financial targets through to early 2029. For Hims & Hers, the deal accelerates global expansion in a heavily regulated industry.

What's the key learning?

💡In highly regulated industries, expansion is rarely as simple as translating your website and flicking on the switch. Healthcare expansion involves multiple regulators, approval processes and country-specific rules that can take years to navigate.

💡Acquiring embedded players can accelerate global growth. In 2018, Ramsay Health Care acquired Capio for $1.3 billion to deepen its European presence using a business already embedded in local healthcare systems. Hims & Hers Health is applying the same strategy. Eucalyptus provides regulatory know-how, infrastructure and an immediate international footprint.

💡And while both companies have faced significant scrutiny, the $1.6 billion deal shows that international ambition and strategic positioning can outweigh the regulatory noise.