Hims & Hers to Acquire Eucalyptus for $1.15 Billion to Expand Telehealth Services – Friday, February 20, 2026

Hims & Hers has announced its intention to acquire Eucalyptus, an Australian digital health company, for $1.15 billion. This strategic move aims to expand Hims & Hers' footprint in the digital health sector by enhancing its telehealth capabilities and broadening its market reach.

Who should care: hospital CIOs, clinical operations leaders, healthcare IT directors, compliance officers, and medical technology decision-makers.

What happened?

Hims & Hers, a leading player in the digital health space, has unveiled plans to acquire Eucalyptus for $1.15 billion. Eucalyptus, headquartered in Australia, specializes in digital health and wellness, having developed a robust telehealth platform that serves a growing customer base. This acquisition is set to significantly bolster Hims & Hers' digital health portfolio by integrating Eucalyptus’ established technology and expanding its geographic presence. The transaction remains subject to customary closing conditions and regulatory approvals, underscoring its complexity and scale. Strategically, this move reflects Hims & Hers’ broader ambition to consolidate resources and accelerate growth in digital health services. By leveraging Eucalyptus’ expertise and infrastructure, Hims & Hers aims to reach a wider audience and enhance the quality and accessibility of its telehealth offerings. This acquisition positions Hims & Hers as a stronger competitor in the rapidly evolving telehealth market, which has experienced heightened demand and innovation in recent years driven by shifting consumer preferences and technological advances.

Why now?

The timing of this acquisition aligns with an ongoing wave of consolidation in the telehealth sector, which has gained significant momentum over the past 18 months. The COVID-19 pandemic served as a catalyst, dramatically accelerating the adoption of telehealth services and underscoring their critical role in modern healthcare delivery. As demand for convenient, remote healthcare solutions continues to rise, companies like Hims & Hers are making substantial investments to expand their capabilities and strengthen their market positions. The $1.15 billion acquisition of Eucalyptus highlights the strategic imperative for digital health platforms to scale rapidly and innovate in response to evolving consumer expectations and competitive pressures.

So what?

This acquisition carries important implications for the telehealth market and the broader healthcare ecosystem. By integrating Eucalyptus’ platform, Hims & Hers is poised to enhance its service offerings, potentially improving patient outcomes through more accessible and comprehensive care. The deal also signals the growing valuation and strategic importance of digital health companies, emphasizing the need for continued investment in technology to meet shifting consumer demands. For hospitals and healthcare providers, this trend reinforces the urgency of embracing digital transformation and incorporating telehealth solutions into their care models to remain competitive and responsive to patient needs.

What this means for you:

• For hospital CIOs: Evaluate opportunities to integrate emerging digital health platforms that can enhance patient engagement and streamline care delivery.
• For clinical operations leaders: Explore partnerships with telehealth providers to expand service offerings and improve patient access to care.
• For healthcare IT directors: Assess how digital health acquisitions may impact existing IT infrastructure, data management, and interoperability strategies.

Quick Hits

• Impact / Risk: The acquisition is likely to intensify competition in the telehealth market, driving innovation and potentially reducing costs for consumers.
• Operational Implication: Healthcare providers may need to adapt workflows and technology stacks to integrate new digital health platforms effectively.
• Action This Week: Review current telehealth partnerships, evaluate the effects of market consolidation, brief executive teams on strategic implications, and update digital health strategy documents accordingly.