Smart ring manufacturer Oura announced on Tuesday that it is acquiring AI-native primary care company Counsel Health for $625 million. The major deal comes just weeks after Oura postponed its up to $2.2 billion IPO indefinitely, citing ongoing uncertainty in the public market.
Integrated Medical Services
Counsel Health operates an AI-powered healthcare platform that pairs a chat-based medical experience with access to licensed physicians. Its service was successfully integrated into the Oura app back in June. Users can connect with the platform's medical AI for personalized guidance and consult with a physician directly inside the app whenever necessary. The companies now plan to expand their partnership to cover preventative care, acute care, specialty treatment, and chronic care.
Market Pressures and Business Expansion
While Oura has dominated the smart ring sector for years, competitors like RingConn and Ultrahuman are rising to challenge its market position, pushing the firm to continually innovate. By bringing Counsel Health under its umbrella, Oura aims to broaden its commercial scope and help users access critical medical services. Oura CEO Tom Hale stated in a press release that the acquisition helps members take action on their health needs ranging from quick prescriptions and lab results to chronic care and specialist referrals.
Funding History and Future Growth
Counsel Health previously raised a $25 million Series A round a year ago, which was led by Andreessen Horowitz and GV, with PitchBook estimating total funding at around $36 million. Following the acquisition, Oura noted that Counsel will continue serving enterprise partners with the goal of scaling its AI-native care model to a wider audience outside of the existing membership base.
Leadership Transition and Deal Timeline
Counsel CEO Muthu Alagappan will transition to Oura as the chief clinical AI officer alongside the startup's 70 employees. Muthu Alagappan emphasized in the press release that the team built medical AI centered around trust and responsibility while keeping physicians involved in clinical decisions. The transaction is officially expected to close before the end of 2027.
Financial Performance and Valuation
Alongside the acquisition news, Oura reported that its revenue jumped 153% year-over-year to $533 million for the quarter ending September 30. For the full fiscal year 2026, the company generated approximately $1.75 billion in revenue, marking 92% year-over-year growth. The firm previously reached an $11 billion valuation following a $900 million late-stage funding round led by Fidelity in October 2025.
