Hims & Hers: $1.15B Eucalyptus Deal Closes, Adds 850K Customers
Hims & Hers closed its $1.15 billion acquisition of Australia's Eucalyptus on June 2, adding more than 850,000 international customers and four new markets. Days earlier, care-navigation startup Garner Health locked in a $2.74 billion valuation, underscoring how digital health capital is concentrating around scaled platforms.
Dr. Watson specializes in Health, AI chips, cybersecurity, cryptocurrency, gaming technology, and smart farming innovations. Technical expert in emerging tech sectors.
LONDON, Monday, June 8, 2026 — Hims & Hers Health closed its $1.15 billion acquisition of Eucalyptus on June 2, adding more than 850,000 international customers and pushing the New York-listed telehealth group into Australia, Japan, Germany, Canada and a deeper position in the UK. The deal expands the company's international presence across Australia, Canada, Germany, Japan, and the United Kingdom, with Eucalyptus having served more than 850,000 customers as of May 2026. Five days earlier, care-navigation startup Garner Health closed a $100 million Series E at a $2.74 billion valuation — roughly double its February mark. Two deals, one week, one message: capital in health tech is concentrating around platforms that own distribution and data.
Key Takeaways
- Hims & Hers acquired Australian telehealth platform Eucalyptus in a deal valued at up to $1.15 billion.
- The deal structure includes roughly $240M cash at close, deferred payments over 18 months, and performance-based earn-outs through early 2029, payable in cash or stock.
- Hims & Hers reiterated long-term 2030 targets of $6.5 billion in revenue and $1.3 billion in Adjusted EBITDA.
- Garner Health secured $100 million in Series E funding at a $2.74 billion valuation, with Index Ventures leading and Kleiner Perkins, Redpoint, Thrive, Sequoia, Founders Fund and Kaiser Permanente Ventures participating.
- Digital health startups raised $4 billion across 110 deals in Q1 2026, with nearly 60% of investment coming from a dozen mega-deals worth $100 million or more.
Context & Analysis
The Eucalyptus close caps a four-month sprint. Hims & Hers announced the definitive agreement on February 19, 2026, in a transaction valued at up to $1.15Bn. To get there, the company amended its revolving credit facility on May 29, 2026, easing the closing while keeping core loan terms intact. The acquisition follows two earlier international buys — ZAVA in Europe and Livewell in Canada — and gives Andrew Dudum's company a tested operator in markets where direct-to-consumer healthcare has been allowed to scale faster than in the US.
Eucalyptus brings more than 775,000 customers (since updated to 850,000), multi-country operating presence, more than 20 peer-reviewed studies on outcomes, adherence and safety, and Australian Council on Healthcare Standards accreditation; Tim Doyle is slated to become SVP International, running all operations outside the US. Eucalyptus carries an annual revenue run-rate north of $450 million.
Investors are reading the deal alongside a brewing regulatory fight. Hims & Hers recently withdrew a compounded semaglutide pill following pressure from the FDA and a lawsuit from Novo Nordisk, and the Eucalyptus acquisition may be viewed in part as a strategic effort to diversify revenue and reduce dependence on US compounding pharmacy activity.
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Table 1 — How the field is moving
| Company | Position | Recent Move | Source |
|---|---|---|---|
| Hims & Hers | Consumer DTC telehealth | Closed $1.15B Eucalyptus deal, June 2 | Hims & Hers IR |
| Garner Health | Employer care navigation | $100M Series E at $2.74B, May 28 | PR Newswire |
| Teladoc Health | Enterprise virtual care | Stabilising Integrated Care + BetterHelp segments | TradingView/Zacks |
| Eucalyptus (now part of HIMS) | International DTC platform | $450M+ ARR, 850K customers absorbed | SEC 8-K filing |
Competitive Landscape
The headline number — "world's largest consumer health platform" — is now Hims & Hers' to defend. The company says it now has a leading presence across the US, UK, Australian, and Canadian markets, with a growing presence in France, Germany, Ireland, Spain, and Japan. Teladoc remains the enterprise-anchored counterweight. TDOC is a global virtual care platform serving employers, health plans and health systems through integrated, technology-enabled care solutions.
Garner sits in a different lane but plays the same capital concentration game. Garner's financial infrastructure generates approximately $200M in gross annual recurring revenue, doubling year-over-year for five consecutive periods, with a data moat of 60 billion medical records across 320 million patients evaluated using 550 proprietary clinical metrics. Garner raised $118M at a $1.35B valuation in February 2026, then $100M at a $2.74B valuation in May 2026 — a $1.39B increase, or about 2.03x, in roughly three and a half months.
For deeper context, see our Health Tech analysis: "How Health Tech Scales in 2026, Led by Siemens Healthineers and Gartner".
The macro frame matters. Digital health funding rebounded in Q1 2026 to $4 billion across 110 deals, fueled mainly by megadeals, reflecting a market where investors are placing larger bets on fewer startups. The average size of a digital health financing deal during the first quarter was $36.7 million, the highest since the fourth quarter of 2021.
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Table 2 — The platform consolidation thesis
| Company | Category | Key Development | Impact |
|---|---|---|---|
| Hims & Hers | DTC platform | Closed Eucalyptus; 2030 targets $6.5B rev / $1.3B EBITDA | Sets ceiling for global DTC consolidation |
| Garner Health | Employer navigation | 2.03x valuation step-up in one quarter | Repriced as a healthcare "control point" |
| Teladoc | Enterprise virtual care | Integrated Care + BetterHelp execution focus | Defends incumbent payer/employer base |
| Verily (Alphabet) | AI precision health | $300M raise in Q1; Alphabet now minority investor | Big Tech keeps a chip in the game |
What It Means
For Enterprise Buyers
The Eucalyptus close gives multinational employers a single DTC partner that operates across four continents under one clinical governance model. Benefits leaders evaluating point solutions for weight management, men's health, and dermatology can now consider a global RFP rather than country-by-country procurement. Garner, meanwhile, currently works with nearly 800 organizations, reaching 2.5 million members, with clients seeing an annual 12% reduction in healthcare spending. That is the new procurement benchmark: measurable double-digit spend reduction backed by data, not slideware.
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For Investors
Both deals validate the "haves and have-nots" thesis Rock Health flagged at Q1. 2026 has continued a trend of "haves and have-nots" in digital health funding, where some startups are quickly attracting large rounds while others are struggling to raise investment. Companies with proprietary data (Garner) or proprietary distribution (Hims) are getting paid. Point solutions without either are being squeezed — and increasingly bought.
Forward Outlook
Watch July. Hims & Hers closed Eucalyptus in early June, entered Australia, Japan and Germany, deepened its foothold in Canada, named a new Chief Medical Officer for the Hims brand, and is now watching Wall Street recalibrate around the FDA's July peptide panel. Canaccord Genuity, which reiterated its Buy rating and $32 price target on June 3, estimates the compounded peptide TAM, excluding GLP-1s, could reach approximately $20 billion over the next three to five years. Garner's next milestone is converting its 2.03x repricing into category-leading employer wins ahead of the 2027 benefits cycle that opens in Q3.
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Related: Future of Hospitals with AI, Robots, Personalised Medicine and IoT in 2030
Sources include company disclosures, regulatory filings, analyst reports, and industry briefings.
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About the Author
Dr. Emily Watson
AI Platforms, Hardware & Security Analyst
Dr. Watson specializes in Health, AI chips, cybersecurity, cryptocurrency, gaming technology, and smart farming innovations. Technical expert in emerging tech sectors.
Frequently Asked Questions
What did Hims & Hers actually close on June 2, 2026?
Hims & Hers completed its acquisition of Eucalyptus, an Australia-based international digital health company, in a deal valued at up to $1.15 billion. The transaction adds more than 850,000 customers and gives Hims & Hers a leading presence across Australia, Canada, Germany, Japan and the UK in addition to its US base.
How is the $1.15 billion deal structured?
Roughly $240 million is payable in cash at closing. The remainder consists of guaranteed deferred payments over 18 months plus performance-based earn-outs through early 2029, payable in either cash or stock at Hims & Hers' option. The company funded most of it from existing cash and expected US operating cash flows, plus an amended revolving credit agreement.
Why did Garner Health's $100M Series E matter so much?
Garner closed the round at a $2.74 billion valuation just three and a half months after a $118M Series D valued the company at $1.35 billion — roughly a 2.03x repricing in one quarter. Investors are treating Garner as a control-point platform for employer healthcare purchasing, not just another benefits vendor, on the back of a 60-billion-record claims dataset and 12% average client savings.
What does this mean for enterprise health benefits buyers?
Multinational employers can now consider Hims & Hers as a single DTC partner operating across four continents under one clinical governance model — a meaningful shift from country-by-country procurement. On the navigation side, Garner's documented 12% reduction in healthcare spending sets a new measurable benchmark for vendor selection in the 2027 benefits cycle.
What is the next catalyst to watch for Hims & Hers?
The FDA's July peptide advisory panel. Canaccord Genuity estimates the compounded peptide TAM, excluding GLP-1s, could reach approximately $20 billion over the next three to five years, and a favorable outcome would directly affect Hims & Hers' verticalized peptide manufacturing strategy and US growth narrative on top of the newly integrated international Eucalyptus business.
