Amazon to buy One Medical for $3.9 billion as it takes long leap into healthcare

Amazon to buy One Medical for $3.9 billion as it takes long leap into healthcare

E-commerce giant Amazon is taking a big leap into healthcare, this time with a $3.9 billion acquisition of primary-care provider, One Medical.

The acquisition was announced on Thursday by both companies, with Amazon set to buy the healthcare provider in an all-cash deal at $18 per share. The deal will become Amazon’s third biggest acquisition, following the $13.7 billion purchase of supermarket chain Whole Foods and the recently closed $8.45 billion acquisition of movie giant MGM.

One Medical provides a range of medical services to customers at $199 per year, including on-demand virtual care. Members can schedule same-day or next-day appointments for in-person visits using the company’s app, and It also provides care for some seniors in the US Medicare program, following its acquisition of eldercare pioneer Iora Health.

One Medical operates around 188 locations across the US and serves about 767,000 members, according to its quarterly filing released at the end of March.

“We think health care is high on the list of experiences that need reinvention,” said Neil Lindsay, senior vice president of Amazon Health Services. “We see lots of opportunities to both improve the quality of the experience and give people back valuable time in their days.”

This acquisition isn’t Amazon’s first entry into the healthcare market. In 2018, the company acquired mail-order pharmacy PillPack for around $750 million, and two years later it launched Amazon Pharmacy. It is also expanding its Amazon Care telehealth program, which offers virtual consultations and at-home visits from doctors.

Following the purchase, One Medical CEO Amir Dan Rubin will remain as CEO. He said in a statement announcing the deal: “There is an immense opportunity to make the health care experience more accessible, affordable, and even enjoyable for patients, providers, and payers. We look forward to innovating and expanding access to quality healthcare services, together.”

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