The deal and the context
Oura has announced the acquisition of AI-native primary care company Counsel Health for $625 million. According to TechCrunch, the deal comes a few weeks after Oura indefinitely postponed an IPO of up to $2.2 billion, citing uncertainty in the listings market as the reason. The deal is expected to close before the end of 2027.
Counsel Health is an AI-based healthcare platform that combines a medical experience via chat with access to licensed physicians. Its service had been integrated into Oura's app in June: users can converse with the medical AI to receive personalized advice and hand off to a physician when necessary, all within the app. The two companies now intend to expand the existing partnership into prevention, acute care, specialties and chronic disease management.
Why it matters for Oura
The acquisition marks an expansion of Oura's footprint, after it dominated the smart ring market for years and now must contend with the rise of rivals such as RingConn and Ultrahuman. By buying Counsel, the company aims to expand its business and offer its users direct access to medical care. CEO Tom Hale said Oura helps members understand their physiology and that, with Counsel, they will be able to act on their health for different needs: from quick questions to prescriptions, from lab results to chronic care and specialist referrals.
The financial figures released alongside the announcement indicate a quarter ended September 30 with revenue of $533 million, up 153% year over year, and full-year 2026 revenue of about $1.75 billion, an increase of 92%. Oura had reached an $11 billion valuation after a late-stage $900 million funding round in October 2025. These figures help frame the transaction: the acquisition takes place as the company is growing rapidly but has chosen not to go public in the immediate term.
What remains to be verified
Counsel Health had raised a $25 million Series A round a year earlier, led by Andreessen Horowitz (a16z) and GV; according to a PitchBook estimate reported by TechCrunch, total funding was estimated at $36 million. After the acquisition, Oura says Counsel will continue to serve existing and new enterprise partners, with the goal of bringing the AI-based care model to more people beyond Oura members. Counsel CEO Muthu Alagappan will join Oura as chief clinical AI officer together with the company's 70 employees, according to Bloomberg.
Alagappan said Counsel built its medical AI around trust, safety and accountability, keeping physicians in the clinical decision-making process, and that Oura's data provide clinicians with objective context, biometric metrics over time and member engagement. The definitive terms of the transaction, which has yet to close, and how the integration will actually expand services beyond Oura's user base remain to be clarified.
