US telehealth giant Hims & Hers’ USD 1.15bn acquisition in February of Australian digital health company Eucalyptus is expected to significantly shake up the international digital health sector. The deal, set to close in mid 2026, has certainly caused a stir in Australia, where it is by far the largest acquisition of a preventative healthcare company.

Pinning down precise transaction multiples is difficult given the deal’s limited valuation disclosure. But the “up to USD 1.15bn” consideration, which was based on a run‑rate derived from January 2026 revenue, and triple‑digit, year-over-year, quarterly ARR growth through 2025, implies a mid‑ to high‑single‑digit historic revenue multiple and a sizeable payday for Eucalyptus’ founder Tim Doyle and his private equity backers.

This multiple is at the upper end of prevailing sector benchmarks. Nelson Advisors’ January 2026 HealthTech valuation report puts general digital health assets at 4x-6x revenue. But the report notes that premium telehealth and AI‑enabled platforms – those showing strong growth and embedded workflows – command 6x-8x+ revenue multiples.

The deal valuation will have caught the attention of other players and investors in Australia’s burgeoning preventative medicine sector, which is already well known for its strong foundation in biotech, innovative digitally-driven health and AI-powered diagnostics.

Sector stakeholders will also have noted the wider implications of the Eucalyptus deal, which Nelson Advisors said has turned Hims & Hers into an international “powerhouse” and “represents one of the most significant consolidations in the history of the [global] telehealth industry”.

Source: Mergermarket, data correct as at 24-Mar-2026.

Global M&A volumes involving digital healthcare-related companies have been on an upswing over the past few years having soared then tailed off sharply during the pandemic five years ago, as shown below. The sum Hims & Hers has agreed for Eucalyptus – an as yet unprofitable business –  suggests there is more M&A to come in the preventative, personalised and proactive medicine space, which is often dubbed Medicine 3.0.

Coined in 2023, the term ups the ante on pre-20th century Medicine 1.0’s basic treatment and 20th-century Medicine 2.0’s reactive treatment and is used to reference the broad array of digital technologies increasingly used in healthcare.

Medicine 3.0’s appeal lies in the increasingly widespread recognition by governments, citizens, and venture capitalists alike that the traditional and reactive ‘sick care’ health model is no longer sustainable due to skyrocketing medical costs, the explosion in chronic diseases and the burden of aging populations.

Digital healthcare policy tailwinds

A wave of global and government-led agreements has emerged in recent years aiming to secure quality affordable healthcare for all. Many of these, such as the World Bank Group’s, focus on building “digitally enabled” primary care platforms. Australia’s flagship preventative‑health policy framework is committed to shifting at least 5% of total health spending to prevention by 2030.

Furthermore, patients’ increasingly want to be proactively involved in their healthcare, and this is helping unlock the discretionary aspect of Medicine 3.0, said Vincent Wong, partner and co-head of healthcare at private equity firm TPG Asia.

These tailwinds are getting noticed. TPG Asia has several investments that touch on the Medicine 3.0 thematic, and these investments have been attracting the most capital interest from LPs, said Wong, speaking at March’s 2026 AVCJ Private Equity Forum in Sydney.

The firm’s Medicine 3.0 portfolio companies include consumer health and pharma company iNova, which aims to help customers “take control of their health”, and New Zealand’s Tamaki, a Māori-owned disease preventative medical centre group.

Source: Mergermarket, data correct as at 24-Mar-2026

So, could Australia’s preventative healthcare sector be on the radar of domestic and international digital health and diagnostics companies and financial buyers?

Aside from the Eucalyptus deal, recent M&A in Australia’s preventative healthcare space has been relatively small – but it’s notable that many transactions involved overseas buyers. Deals to date include Anglo-French molecular diagnostics group Novacyt’s acquisition of Southern Cross Diagnostics for an initial AUD 8.5m and Seattle, Washington-based BioTek Laboratories’ completion of its merger with Australia’s NutriPATH Pathology for an undisclosed sum.

Last year Atlanta, Georgia-based investor Banyan purchased Medtech Global from Melbourne-based PE firm Advent Partners for an undisclosed sum and Australian health insurer Medibank acquired medical practice group Better Medical from Livingbridge PE for about AUD 159m.

Wider sub-sectors

Companies in wider sub-sectors that are worth monitoring include 3D cell model developer Inventia Life Science, which operates in the area of New Approach Methodologies and has told Mergermarket it is experiencing inbound interest. Another is New Zealand-based chronic health management company Kitea Health, which makes micro-implantable devices. Kitea has said it is receptive to a sale.

Others include personalized cancer vaccines makers like Australian mRNA Contract Development Manufacturing Organisation Southern RNA, which has said it is in talks with investors to raise USD 50m-USD 100m, and DNA sequencing companies like Swan Genomics, which is seeking AUD 35m.

In the sensor-based continuous monitoring space, niche catheter tip location device maker NAVI Medical, and brain monitoring device developers Wavewise and Cortical Dynamics, recently unveiled M&A plans, while airway management device developer ELLIS Medical has said it is seeking pre-seed capital.

In the longevity space, Everlab raised AUD 15m in a seed round led by global growth equity firm Left Lane Capital in July 2025, as reported.