In a remarkable turn of events, over 100 employees at an Australian start-up have become millionaires overnight following a $1.6 billion acquisition by a major US telehealth company.
The start-up, Eucalyptus, is known for its platforms Juniper and Pilot, which offer medications similar to GLP-1s like Ozempic and Mounjaro. Additionally, the company provides a fertility program and treatments for erectile dysfunction.
With its annual revenue run-rate exceeding $637 million, Eucalyptus has caught the attention of Hims & Hers, a leading US telehealth firm, which announced its acquisition of the company on Thursday.
Thanks to the company’s employee share option plan, more than 100 staff members are now poised to enjoy a significant financial windfall.
The atmosphere at Eucalyptus’ Sydney office on Clarence Street was electric, with celebrations erupting as news of the lucrative deal spread among employees.
Excluding the co-founders, the collective value of the employees’ shares is estimated to be around $300 million, according to the Australian Financial Review.
As a result, the average Eucalyptus employee is expected to receive $420,000.
Former Eucalyptus chief commercial officer Joe Harris is understood to have pocketed more than $1million from the deal.
Some staff at Australian-start-up Eucalyptus are due to become millionaires after the company was acquired by US telehealth giant Hims & Hers for $1.6billion on Thursday
Chief executive Tim Doyle (pictured) is due to receive $163million in the deal
‘It’s the peace of mind of knowing I’ve shifted the trajectory of my family’s life forever and have taken care of my future,’ the 29-year-old told the AFR on Monday.
‘Now I can focus on building my company without having to think about the opportunity cost.’
Eucalyptus founder Tim Doyle, who will receive $163million in the deal, described the acquisition as a full circle moment.
The 35-year-old said his company drew inspiration for its telehealth model from Hims & Hers in the United States.
‘By joining Hims & Hers, we will help more people globally believe in the future of healthcare,’ the chief executive wrote on LinkedIn.
He said Eucalyptus aimed to be ‘simple, high-quality, personal, and designed to help prevent disease, instead of merely treating it’.
‘We’ve spent seven years helping customers around the world find the care that fits them,’ the 35-year-old added.
‘And we believe today’s news will be part of accelerating the movement towards affordable healthcare for everyone that feels like a luxury.’
Thanks to an employee share option plan, the value of staff shares is estimated at about $300 million in total following the deal
Mr Doyle will enter a new role as senior vice president of international business.
Eucalyptus, which has offices in Australia, the United Kingdom, Germany and Japan, is understood to serve more than 775,000 customers.
Along with the large payday for employees, the company has prided itself on being a ‘friendly’ workplace, but has come under fire for setting staff ‘unreasonable’ targets.
Anonymous staff from its Philippines office told the AFR in January there had been multiple resignations, with staff reporting feeling exhausted by high targets.
They claimed Eucalyptus raised the number of customer queries each assistant should process to more than 65 a day to meet surging demand.
‘Failing to meet these metrics could lead to escalation from management, particularly local management in the Philippines, and in some cases this created fear of termination,’ a former employee alleged.
Another added: ‘I love the work and the purpose of my role, but in my team alone about 10 people resigned within a single month due to exhaustion, health concerns and a lack of balance.’
Eucalyptus clinical director Matt Vickers told the AFR the targets prioritised patient care, not volume.
The Daily Mail has contacted Eucalyptus for comment.
