Oura to Acquire Counsel Health for $625 Million, Expanding AI-Driven Care Amid IPO Delays

Oura has agreed to acquire Counsel Health, an AI-native primary care platform, for $625 million, a move that broadens the wearables company’s push into in-app medical services as it navigates a postponed IPO. The deal follows Oura’s decision to indefinitely delay its up to $2.2 billion initial public offering, citing “uncertainty in the IPO market.” Counsel Health provides an AI-powered, chat-based medical experience complemented by access to licensed physicians. Its services were integrated into the Oura app in June, allowing users to consult Counsel’s medical AI for personalized advice and, when needed, connect with a physician within the same app.

The integration marked a strategic step toward a unified digital health workflow that blends AI triage with clinician oversight. Under the expanded partnership, Oura and Counsel plan to extend their collaboration across preventative care, acute care, and specialty and chronic care, leveraging Oura’s biometric data and user engagement to deliver more comprehensive medical guidance. The move comes as competition in the smart ring and wearable space intensifies, with rivals such as RingConn and Ultrahuman gaining traction and pressuring Oura to accelerate innovation beyond its long-dominant position.

By acquiring Counsel Health, Oura signals its intention to turn health insights into actionable care even for non-members, widening the potential user base and monetization avenues. Oura CEO Tom Hale characterized the acquisition as a natural extension of the company’s mission: “Oura helps members understand their physiology, and with Counsel, they can take action on their health across a range of needs, from quick questions and prescriptions to lab results, chronic care, and referrals.” The integration will be accompanied by Counsel’s ongoing relationship with existing enterprise partners, and Counsel will continue to operate its services across current and new partner networks after the closing. Counsel Health, which last year raised a $25 million Series A led by Andreessen Horowitz (a16z) and GV, had previously disclosed a total funding haul of about $36 million.

Following the acquisition, Counsel’s CEO Muthu Alagappan will join Oura as chief clinical AI officer, joining roughly 70 Counsel employees who will become part of the Oura organization. In remarks provided to Bloomberg, Alagappan emphasized that Counsel’s medical AI was built with trust, safety, and physician involvement at its core, helping clinicians interpret AI-driven insights in the context of real patient data. He added that Oura’s biometrics, longitudinal data, and member engagement would enable more informed clinical decision-making within the AI-native care model. The companies indicated that the deal is expected to close by the end of 2027, subject to customary approvals and closing conditions.

In the near term, the acquisition does not appear to alter Oura’s fiscal trajectory, as the company reported a 153% year-over-year revenue rise to $533 million for the quarter ended September 30. For the full fiscal year 2026, Oura generated approximately $1.75 billion in revenue, representing roughly 92% annual growth. The unicorn’s $11 billion valuation, unlocked following a $900 million late-stage funding round in October 2025, underscored the market’s favorable reception to its longevity and potential in digital health. The Counsel deal also reflects a broader trend of tech-enabled healthcare platforms pursuing deeper integration with consumer devices to drive engagement and care outcomes. As wearables collect more granular physiological data, firms like Oura are betting that AI-driven triage, continuous monitoring, and physician-backed guidance can reduce friction for users seeking timely medical input—while enabling partners and enterprise clients to participate in a broader, data-informed care ecosystem. The post-merger strategy will likely revolve around expanding AI-enabled care pathways, refining risk stratification, and navigating regulatory considerations as care algorithms scale across preventative, acute, and chronic domains.