Oura will acquire Counsel Health, an AI-native primary care company, for $625 million in cash, the company confirmed on Tuesday. The acquisition, which is subject to customary closing conditions, is expected to finalize before the end of the calendar year. This deal represents Oura's largest acquisition to date.
The smart ring maker's decision to purchase Counsel Health follows its indefinite postponement of an initial public offering (IPO) in late September. Oura had aimed to raise up to $2.2 billion in an IPO that could have valued the company at approximately $15 billion, but cited "uncertainty in the IPO market" as the reason for the delay. Despite the IPO setback, Oura reported strong preliminary fiscal fourth-quarter results, with revenue growing 153% year-over-year to $533 million for the quarter ending September 30. Fiscal year 2026 revenue is estimated at $1.75 billion, a 92% increase from the prior year. Oura currently has over six million members.
Counsel Health, founded by Dr. Muthu Alagappan, combines medical AI with a network of in-house physicians to deliver on-demand primary care. The company's platform allows Oura members to initiate a chat with Counsel's medical AI, which draws on connected medical records, past interactions, clinical guidelines, and Oura's continuous biometric data to provide personalized guidance. If needed, the conversation can escalate to a board-certified Counsel physician within minutes, all within the Oura app. These physicians can offer diagnoses, prescriptions, and referrals. Counsel Health has previously raised $36 million in funding.
The acquisition builds on an existing partnership between Oura and Counsel Health, which had already integrated Counsel's medical AI triage and clinician access into the Oura app. This collaboration also extended to a Centers for Medicare and Medicaid Services (CMS) program for chronic-care management. Oura's Chief Executive Officer, Tom Hale, stated that the acquisition accelerates Oura's vision for more proactive and personalized healthcare. He noted that the combination allows Oura members to "take action on their health across a range of needs, from quick questions and prescriptions to lab results, chronic care, and referrals."
Counsel Health will continue to serve its existing enterprise partners, including health plans, health systems, and employers, which Oura believes will expand its reach beyond its current member base. Muthu Alagappan, Counsel Health's founder and CEO, will transition to Oura's chief clinical AI officer, and Counsel's 70 employees will join Oura. Counsel's physician team, consisting of approximately 50 on-demand doctors, is also expected to expand.
The deal positions Oura to evolve beyond health tracking into a broader digital health platform that delivers clinical care. This reflects a growing trend to connect consumer wearables with clinical services and a belief that AI chatbots will play a central role in future healthcare delivery.