Hims & Hers is spending more than $1 billion in a push to expand globally

By Tomi Kilgore

Stock bounces further off a 17-month low, after announcing deal to buy Australia-based telehealth company Eucalyptus

Hims & Hers' stock surges, as a $1.2 billion deal to buy an Australia-based telehealth company affirms the health and wellness company's global ambitions.

Shares of Hims & Hers Health rallied in early Thursday trading, after the health-and-wellness platform announced a deal to buy an Australia-based telehealth provider.

The deal to buy Eucalyptus affirms the company's global ambitions, as it allows Hims & Hers (HIMS) to enter markets in Australia and Japan, while increasing its presence in the United Kingdom, Germany and Canada.

It also comes as the company has been in hot water with regulators and former partner Novo Nordisk (NVO) for trying to sell its own version of Novo's Wegovy weight-loss pill.

Hims & Hers' stock had already tumbled 41.5% in February through Wednesday, which put it on track for its monthly performance since going public in September 2019.

On Thursday, the stock climbed 6.1% in premarket trading, after closing the previous session 0.3% above the 17-month closing low seen on Feb. 12.

Under the terms of the deal, valued at $1.15 billion, Hims & Hers will pay about $240 million in cash when the deal closes, which is expected in mid-2026. The rest of the deal's value will include guaranteed deferred payments over 18 months, plus payments tied to achieving agreed-upon financial targets.

Hims & Hers CEO Andrew Dudum said meeting the demand for simpler, more personalized healthcare is a global challenge, as demand is met differently in every region. Buying Eucalyptus puts the company on a path to becoming "the leading global consumer health platform," he said.

"With Eucalyptus, we will not only enter new markets; we will expand our ability to serve customers globally, trusting local experts to be a key part of how we transform healthcare into a customer-first, personalized industry," Dudum said.

Eucalyptus reported an annual revenue of more than $450 million and has served more than 775,000 customers. In comparison, Hims & Hers had revenue of $599 million in the third quarter, with about 2.5 million subscribers.

-Tomi Kilgore

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

02-19-26 0808ET