On Tuesday, Oura announced its plans to acquire AI-native primary care company Counsel Health for $625 million. This strategic move follows Oura's recent decision to indefinitely postpone its up to $2.2 billion IPO, a decision made due to "uncertainty in the IPO market."
Counsel Health operates as an AI-powered healthcare platform that blends a chat-based medical interface with access to licensed physicians. The company's services have been integrated into the Oura app since June.
Within the Oura app, users can connect with Counsel’s medical AI to receive personalized advice or consult with a physician when necessary. The two companies intend to leverage this existing partnership to develop services across preventative, acute, and chronic care.
Although Oura has dominated the smart ring market for years, new competitors such as RingConn and Ultrahuman are challenging its position, prompting the company to innovate. By acquiring Counsel Health, Oura aims to broaden its business offerings and assist users in accessing necessary medical care.
"Oura helps members understand their physiology and, with Counsel, they can take action on their health across a range of needs, from quick questions and prescriptions to lab results, chronic care, and referrals," stated Oura CEO Tom Hale in a press release.
Counsel Health previously raised a $25 million Series A round a year ago, led by Andreessen Horowitz and GV. PitchBook estimates the company had secured a total of $36 million in funding prior to the acquisition.
Post-acquisition, Oura plans to allow Counsel to continue serving enterprise partners while expanding its AI-native care model to reach a broader audience beyond Oura's current membership.
Counsel CEO Muthu Alagappan will join Oura as Chief Clinical AI Officer, bringing the company's 70 employees with him, according to Bloomberg.
"At Counsel, we’ve built medical AI around trust, safety, and responsibility, keeping physicians involved in clinical decisions," Alagappan noted in the press release. He added, "Oura’s data provides clinicians with objective context, trended biometrics, and member engagement to deliver more informed care. From the beginning, our teams bonded over a shared vision and culture, which only strengthened as we negotiated the deal over the past few months."
The acquisition is expected to be finalized before the end of 2027.
In other business news, Oura reported a 153% year-over-year revenue increase to $533 million for the quarter ending September 30. For fiscal year 2026, the company generated approximately $1.75 billion in revenue, representing a 92% growth rate.
The company reached an $11 billion valuation following a $900 million late-stage funding round in October 2025.
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