The article outlines significant mergers and acquisitions in the digital health sector during Q1 2026, highlighting deals like Hims & Hers acquiring Eucalyptus and Universal Health Services purchasing Talkspace. It also notes continued large funding rounds and the emergence of new unicorns, reflecting a shift toward strategic growth rather than public market exits.

• M&A is replacing IPOs as the main exit path in digital health: Hims & Hers bought Eucalyptus ($240M upfront, up to $1.15B) for Australian market entry, Sword Health paid $285M for Kaia Health to expand in Europe, and UHS bought Talkspace for $835M—well below its SPAC-era valuation.
• Despite the IPO freeze, funding stayed strong and selective: OpenEvidence raised $250M at a $12B valuation and WHOOP raised $575M at over $10B, with seven new unicorns minted this quarter (e.g., Eight Sleep at $1.5B, eMed above $2B).
• Capital is concentrating in fewer, higher-performing companies while strategic buyers prioritize geographic expansion and folding digital tools into established care models.