Oura revealed on Tuesday its plan to acquire Counsel Health, an AI-native primary care company, for $625 million. This announcement follows closely on the heels of Oura's decision to indefinitely postpone its IPO—which could have raised up to $2.2 billion—just weeks earlier, citing "uncertainty in the IPO market."

Counsel Health operates an AI-driven healthcare platform that merges a chat-based medical interface with access to licensed physicians. The service was folded into the Oura app back in June. Through the app, users can consult Counsel's medical AI for tailored health guidance and connect with a doctor when necessary. The two companies now intend to broaden their existing collaboration into preventative care, acute care, and both specialty and chronic care. Although Oura has long held a dominant position in the smart ring sector, challengers such as RingConn and Ultrahuman are rising in an effort to unseat it—ramping up the pressure on Oura to keep pushing innovation. With this acquisition, Oura aims to grow its business and improve user access to medical services.

"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," Oura CEO Tom Hale said in a press release.

Counsel Health secured a $25 million Series A round a year ago, led by Andreessen Horowitz (a16z) and GV. Pitchbook pegs its total fundraising at $36 million. After the acquisition, Oura says Counsel will keep serving both existing and new enterprise partners, with the aim of extending its AI-native care model to more people beyond Oura's own membership base. Counsel CEO Muthu Alagappan will join Oura as chief clinical AI officer, bringing along the company's 70 employees, according to Bloomberg.

"At Counsel, we've built medical AI around trust, safety and responsibility, keeping physicians in the loop for clinical decisions," Alagappan said in the press release. "Oura's data gives clinicians objective context, trended biometrics, and member engagement to deliver more informed care. From the start, our teams bonded over a joint vision, shared culture, and mission, further solidifying as we negotiated our deal over the past few month."

The transaction is anticipated to close before the end of 2027. Oura additionally reported that revenue climbed 153% year-over-year to $533 million for the quarter ending September 30. For fiscal year 2026, Oura brought in approximately $1.75 billion in revenue, reflecting 92% year-over-year growth. The company hit an $11 billion valuation after a $900 million late-stage funding round in October 2025.