Hims & Hers to Buy Eucalyptus for $1.15B, Adding $450M ARR and New Markets
Hims & Hers agreed to acquire Eucalyptus for up to $1.15 billion, with $240 million paid at closing and the remainder in deferred and earnout payments through early 2029. Eucalyptus brings a $450 million ARR with triple-digit 2025 growth and expands Hims & Hers into Australia, the U.K., and Germany.
1. Acquisition Details
Hims & Hers agreed to acquire Eucalyptus in a deal valued at up to $1.15 billion, with $240 million in cash payable at closing. The remaining consideration includes guaranteed deferred payments over 18 months and earnouts based on financial targets through early 2029.
2. Eucalyptus Financial Profile
Eucalyptus has an annual revenue run-rate north of $450 million and delivered triple-digit ARR growth each quarter in 2025, operating within sight of profitability. This robust growth enhances Hims & Hers’ established domestic margin profile.
3. Strategic Rationale and Market Expansion
The acquisition immediately expands Hims & Hers’ footprint into Australia, the U.K., and Germany, with planned entry into Japan and Canada post-close. The deal aligns with the company’s strategy to offer personalized telehealth solutions and secure category leadership in key global markets.
4. Financing and Timeline
Hims & Hers plans to fund most of the acquisition through existing cash and future operating cash flows, preserving financial flexibility. The transaction is expected to close in mid-2026, positioning the combined entity for accelerated international growth.