Oura Acquires Counsel Health for $625M to Bring AI Primary Care to Smart Ring Users

Oura Acquires Counsel Health in $625 Million All-Cash Deal

Oura announced on Tuesday that it's acquiring AI-native primary care company Counsel Health for $625 million in cash, marking the smart ring maker's largest acquisition to date by multiples1

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. The deal, expected to close before the end of 2027, brings Counsel Health's AI-powered chat-based medical platform and network of board-certified physicians directly into the Oura app1

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. Counsel Health had previously raised approximately $36 million, including a $25 million Series A led by Andreessen Horowitz and GV just a year ago1

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Integrating AI Primary Care with Wearable Health Technology

The acquisition transforms how Oura's six million members access healthcare. Users can now start from an Oura insight or chat with Counsel's medical AI, which draws on connected medical records, prior interactions, clinical guidelines and biometric data from their smart ring3

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. Within minutes, conversations can escalate to a board-certified Counsel physician who can provide diagnoses, prescriptions and referrals—all without leaving the Oura app2

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. "This is a massive step in our mission to empower people to live healthier, longer, by delivering on the promise of a 24-7 doctor in your pocket," said Tom Hale, Oura's CEO2

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. The service has been available within Oura's app since June, and among surveyed members who use Counsel, more than 90% said their Oura data helped them get better care2

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Expanding Beyond Preventative Care into Chronic Conditions

Oura and Counsel Health plan to expand their existing partnership across preventative care, acute care, and specialty and chronic care1

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. Chronic care coverage includes reproductive health, aging and cardiometabolic health2

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. Counsel's system uses specialized AI agents for tasks such as taking medical history, reviewing records and detecting emergencies, with physicians providing feedback that continuously improves each agent2

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. "At Counsel, we've built medical AI around trust, safety and responsibility, keeping physicians in the loop for clinical decisions," said Muthu Alagappan, Counsel's founder and CEO2

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. Alagappan will join Oura as chief clinical AI officer, alongside Counsel's 70 employees1

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. The physician bench, currently around 50 doctors who work on demand, is expected to expand3

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Strategic Move Amid Competitive Pressure and IPO Postponement

The acquisition comes weeks after Oura postponed its up to $2.2 billion IPO indefinitely in September, citing "uncertainty in the IPO market"1

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. While Oura has dominated the smart ring market for years, rivals like RingConn and Ultrahuman are emerging, putting pressure on the company to keep innovating1

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. By acquiring Counsel Health, Oura is looking to expand its business model beyond wearable health technology into actionable medical care. Following the acquisition, Counsel will continue serving existing and new enterprise partners, including health plans, health systems and employers, potentially bringing its AI-driven health insights model to people beyond Oura's membership base1

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Impressive Revenue Growth Fuels Investment

Oura announced the deal alongside preliminary fiscal fourth-quarter results showing remarkable growth. Revenue grew 153% year-over-year to $533 million for the quarter ended September 30, with adjusted EBITDA of $87 million representing a 16% margin2

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. For fiscal year 2026, Oura generated revenue of approximately $1.75 billion, marking 92% year-over-year growth1

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. The company reached an $11 billion valuation following a $900 million late-stage funding round in October 20251

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. David Shuman, Oura's executive chairman, cited this revenue growth and the membership base as the basis for the investment, stating "Oura tells members what's happening in their bodies, and Counsel helps them act on it"3

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. The figures are unaudited and may change as Oura completes its year-end close and audit3

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