Amazon acquires health provider One Medical for $3.9 billion

E-commerce giant Amazon announced Thursday that it will acquire primary health care organization One Medical in a deal valued at approximately $3.9 billion, marking another expansion for the retailer into health services.

Amazon said in a statement that it will acquire One Medical for $ 18 per share in a fully cash transaction. Outside of the healthcare space, Amazon also owns grocery chain Whole Foods, sports streaming service Twitch, home security doorbell service Ring and dozens of other subsidiaries.

One Medical is one of Amazon’s biggest acquisitions, following its $13.7 billion deal to buy Whole Foods in 2017 and its $8.5 billion purchase of Hollywood studio MGM, which closed earlier of the year.

Neil Lindsay, senior vice president of Amazon Health Services, said in a statement that the acquisition is aimed at reinventing the healthcare “experience” for customers, particularly in areas such as booking an appointment, long waits at the waiting room for a hospital and making trips. at a pharmacy.

“We believe health care occupies a prominent place on the list of experiences that need reinvention,” he said. “We love inventing to make what should be easy easy, and we want to be one of the companies that helps dramatically improve the health care experience for years to come.”

Under the terms of the agreement, which has yet to pass regulatory approval, Amir Dan Rubin will continue as CEO of One Medical.

One Medical is delighted to join Amazon, a company that has “a long-term willingness to invest,” Rubin said in a statement.

“There is an immense opportunity to make the health care experience more accessible, affordable and even enjoyable for patients, providers and payers,” he said.

One Medical, whose parent company is San Francisco-based 1Life Healthcare, Inc., is a membership-based service that offers patients both in-person and virtual doctor visits. As of March, it had about 767,000 members and 188 medical offices in 25 markets, according to its first-quarter earnings report, which also showed the company incurred a net loss of $90.9 million after revenue of $ 254.1 million.

Amazon’s latest acquisition favors company raid to health services. In 2020, the retail giant opened one online pharmacy which allows customers to order their medications or refills online and receive them at their front door in a couple of days. Last year, he started offering his Amazon Care Telemedicine Program to employers across the country.

In the morning trading, 1Life Healthcare shares rose 68% to $ 17.13.