Hims & Hers Acquires Eucalyptus for $1.6B, Creating 100+ Employee Millionaires

The $1.6 billion acquisition of Eucalyptus by Hims & Hers represents a watershed moment for the Australian technology sector and a masterclass in the power of Employee Share Option Plans (ESOPs). By absorbing the Sydney-based telehealth firm, Hims & Hers is not only expanding its global footprint but also validating a business model centered on the high-growth GLP-1 weight loss and specialized health markets. For the workforce at Eucalyptus, the deal is transformative, effectively minting more than 100 new millionaires and providing a significant financial windfall for hundreds more. This event underscores the tangible value of equity in the modern compensation package, particularly in sectors where rapid scaling is driven by breakthrough medical technologies.

The financial mechanics of the deal highlight the scale of Eucalyptus’s success. With an annual revenue run-rate exceeding $637 million, the company had already established itself as a dominant player in the Australian market through its targeted brands, Juniper and Pilot. These platforms, which facilitate access to GLP-1 medications like Ozempic and Mounjaro alongside treatments for fertility and erectile dysfunction, mirrored the successful playbook established by Hims & Hers in the United States. This strategic alignment made the acquisition a natural progression, described by Eucalyptus founder Tim Doyle as a full circle moment. Doyle himself is set to receive $163 million from the transaction, but the broader distribution of wealth is what sets this deal apart in the regional market.

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The $1.6 billion acquisition of Eucalyptus by Hims & Hers represents a watershed moment for the Australian technology sector and a masterclass in the power of Employee Share Option Plans (ESOPs).

From an HR and workforce perspective, the most compelling aspect of this transaction is the distribution of wealth across the organization. Excluding the co-founders, the collective value of employee shares is estimated at approximately $300 million. This results in an average payout of roughly $420,000 per employee, a figure that far exceeds typical startup exit benchmarks. Such outcomes are critical for the health of a regional tech ecosystem, as they provide the seed corn for future innovation. As seen with the PayPal Mafia or the early employees of Atlassian and Canva, this level of liquidity often leads to a surge in new entrepreneurial activity as former employees use their windfalls to fund their own ventures. Former Chief Commercial Officer Joe Harris, who is expected to receive over $1 million, noted that the deal has fundamentally shifted his family’s financial trajectory, allowing him to focus on building his next company without the pressure of opportunity costs.