Hims & Hers Health Inc. (HIMS) experienced a significant pre-market surge of 9.22% on Thursday, as investor sentiment turned sharply positive following a major corporate announcement.

The dramatic price movement was driven by the company's announcement that it has agreed to acquire Australian digital health company Eucalyptus in a transaction valued at up to $1.15 billion. This strategic acquisition is designed to accelerate Hims & Hers' international expansion, providing the company with a foothold in Australia and Japan while deepening its presence in the United Kingdom, Germany, and Canada.

The deal structure includes approximately $240 million payable in cash upon closing, with the remainder consisting of guaranteed deferred payments over 18 months and performance-based earnouts tied to meeting financial targets through early 2029. Hims & Hers indicated it plans to finance most of the transaction with existing cash on hand and future operating cash flows from its U.S. operations.