Smart-ring maker Oura is expanding beyond health tracking into medical services through a $625 million acquisition of AI-powered primary care company Counsel Health. Announced on Tuesday, the deal builds on an existing partnership that has brought virtual medical support directly into the Oura app.

The acquisition comes weeks after Oura indefinitely postponed plans for an initial public offering that could have raised up to $2.2 billion, citing uncertainty in the IPO market. Instead, the company is pursuing growth by broadening its healthcare offering and giving its biometric data a more direct role in medical care.

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From Health Tracking To Medical Services

Counsel combines an AI-powered, chat-based medical service with access to licensed physicians. Its platform was integrated into the Oura app in June, allowing members to receive personalised guidance through medical AI and consult a doctor when necessary.

The companies plan to expand the integration across preventive, acute, specialist and chronic care. Members can already use the service for a range of needs, including medical questions, prescriptions, laboratory results, ongoing treatment and referrals.

“Oura helps members understand their physiology and, with Counsel, they can take action on their health across a range of needs,” Oura CEO Tom Hale said in the announcement.

The strategy connects continuous biometric monitoring with clinical services. Data collected by wearable devices can give doctors additional insight into changes in a patient’s health over time, while access to medical professionals can help users translate those observations into practical decisions. For Oura, the move also creates an opportunity to expand beyond hardware and subscriptions into a more comprehensive healthcare service.

Competition In The Smart-Ring Market

Oura has established itself as a leading player in the smart-ring category, but competitors such as RingConn and Ultrahuman are challenging its position. Adding medical services could help the company differentiate its platform as competition for consumers’ attention and spending intensifies.

Counsel will also continue serving existing and new enterprise partners after the acquisition closes. This gives Oura an opportunity to extend the company’s AI-enabled care model beyond its own membership base.

Counsel Team To Join Oura

Counsel CEO Muthu Alagappan will join Oura as chief clinical AI officer, alongside the company’s approximately 70 employees, Bloomberg reported.

Counsel raised a $25 million Series A round a year ago, led by Andreessen Horowitz and GV. According to PitchBook, the company has raised $36 million in total.

Alagappan said Counsel developed its medical AI around trust, safety and physician involvement in clinical decisions. He also highlighted the potential of Oura’s data to provide clinicians with objective health context, biometric trends and information about how members engage with their care.

The acquisition is expected to close before the end of 2027.

Strong Revenue Growth Despite IPO Delay

The deal comes as Oura reports significant revenue growth. Revenue increased 153% year over year to $533 million in the quarter ended September 30. For fiscal 2026, the company generated approximately $1.75 billion, up 92% from the previous year.

Oura reached an $11 billion valuation after raising $900 million in a late-stage funding round in October 2025. With its IPO plans on hold, the Counsel acquisition represents a major investment in a new growth direction: combining consumer health data with personalised medical care.