Hims & Hers Targets Global Growth With $1.15 Billion Australian Deal

2026-02-19 companies

San Francisco, Thursday, 19 February 2026.
Hims & Hers accelerates its global strategy by acquiring Australian telehealth leader Eucalyptus for $1.15 billion, securing entry into Japan and Australia while adding over $450 million in annual revenue potential.

Strategic Valuation and Deal Structure

The acquisition, announced on February 18, 2026, structures the $1.15 billion valuation through a combination of upfront capital and performance-based incentives [2]. Hims & Hers will pay approximately $240 million in cash upon the transaction’s closing, which is anticipated in the middle of the 2026 calendar year [1][4]. The remainder of the valuation is contingent on guaranteed deferred payments over the following 18 months and earnout payments tied to specific financial targets extending through early 2029 [2]. This structured approach allows Hims & Hers to preserve financial flexibility on its balance sheet while integrating a company that currently boasts an annual revenue run-rate exceeding $450 million [2].

Geographic Expansion and Leadership Integration

The deal is pivotal for Hims & Hers’ international roadmap, providing an immediate foothold in Australia and Japan while deepening existing operations in the United Kingdom, Germany, and Canada [1][5]. The company intends to leverage Eucalyptus’ established regional partnerships to scale its personalized infrastructure globally [2]. In a move to ensure continuity and leverage local expertise, Eucalyptus CEO Tim Doyle will join Hims & Hers as the Senior Vice President of International [5]. Doyle noted that the integration aims to build a “customer-first, personalized industry” by combining Hims & Hers’ platform capabilities with Eucalyptus’ local market knowledge [2].

Market Reaction and Regulatory Headwinds

Investors reacted positively to the announcement, with Hims & Hers stock (NYSE: HIMS) rising in extended trading sessions. After closing at $15.82 on February 18, the stock price increased to $17.03 in extended trading, representing a gain of 7.649% [7]. This bullish sentiment was echoed in premarket trading on Thursday, where shares were trading 3.4% higher [5]. The market’s optimism comes despite technical indicators suggesting the stock was previously oversold, with an RSI of 16.87 prior to the news [6].

Sources

Mergers & Acquisitions Telehealth