Smart ring maker Oura has agreed to acquire AI-driven primary care company Counsel Health in a deal valued at $625 million, the company confirmed on Tuesday. The announcement comes just weeks after Oura indefinitely shelved plans for an initial public offering that had been expected to raise as much as $2.2 billion, with the company pointing to instability in the IPO market as the reason for the delay.

Counsel Health operates an AI-native healthcare platform that blends a conversational, chat-based medical interface with direct access to licensed physicians. The startup's service had already been woven into the Oura app as of June, giving users an early look at how the two companies' offerings could work in tandem.

Bringing Medical Care Into the Oura Ecosystem

Through the integrated platform, Oura members can engage with Counsel's medical AI to receive personalized health guidance and escalate to a licensed physician when the situation calls for it, all without leaving the Oura app. With the acquisition now formalized, both companies intend to deepen that collaboration and extend their reach across preventative care, acute care, and specialty and chronic care management.

Oura CEO Tom Hale framed the deal as a natural extension of what the company already does for its members. "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," he said in a statement accompanying the announcement.

The acquisition reflects broader strategic pressures facing Oura. Although the Finnish company has held a dominant position in the smart ring category for several years, newer competitors including RingConn and Ultrahuman have been gaining ground and challenging Oura's market leadership. Adding a healthcare services layer to its hardware-and-software business gives the company a differentiated path forward beyond wearable device sales alone.

About Counsel Health

Counsel Health secured a $25 million Series A funding round approximately one year ago, in a raise led by prominent venture firms Andreessen Horowitz (a16z) and GV. According to data from Pitchbook, the company had raised a total of around $36 million prior to this acquisition.

Counsel CEO Muthu Alagappan is set to join Oura in the role of chief clinical AI officer, bringing the startup's approximately 70 employees along with him, according to reports from Bloomberg. Alagappan emphasized the care and responsibility that has underpinned Counsel's approach to medical AI. "At Counsel, we've built medical AI around trust, safety and responsibility, keeping physicians in the loop for clinical decisions," he said. "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 months."

Oura has indicated that following the close of the acquisition, Counsel will continue to serve both its existing enterprise partners and new ones, with a stated goal of extending its AI-native care model to a broader population beyond those already subscribed to Oura's platform. The transaction is expected to be completed before the end of 2027.

Strong Financial Performance

Alongside the acquisition news, Oura released financial figures that underscore the company's rapid growth trajectory. The company reported revenue of $533 million for the quarter ending September 30, representing a 153% increase compared to the same period a year earlier. For its full fiscal year 2026, Oura generated approximately $1.75 billion in revenue, reflecting 92% year-over-year growth.

Those numbers follow a significant fundraising milestone for the company. In October 2025, Oura closed a $900 million late-stage funding round that pushed its valuation to $11 billion, cementing its status as one of the more heavily capitalized consumer health technology companies currently operating in the private market.