E-commerce big Amazon announced Thursday it’ll purchase main well being care group One Medical in a deal valued at roughly $3.9 billion, marking one other growth for the retailer into well being care providers.
Amazon stated in a press release it’ll purchase One Medical for $18 per share in an all-cash transaction. Exterior of the well being care area, Amazon additionally owns grocery retailer chain Entire Meals, esports streaming service Twitch, dwelling safety doorbell service Ring and dozens of different subsidiaries.
One Medical marks one among Amazon’s greatest acquisitions, following its $13.7 billion deal to purchase Entire Meals in 2017 and its $8.5 billion buy of Hollywood studio MGM, which closed earlier this yr.
Neil Lindsay, senior vice chairman of Amazon Well being Companies, stated in a press release that the acquisition is geared towards reinventing the well being care “expertise” for purchasers, notably round issues like reserving an appointment, lengthy waits in a hospital ready room, and taking journeys to a pharmacy.
“We predict well being care is excessive on the checklist of experiences that want reinvention,” he stated. “We love inventing to make what needs to be straightforward simpler and we wish to be one of many corporations that helps dramatically enhance the well being care expertise over the subsequent a number of years.”
Beneath phrases of the deal, which should nonetheless move regulatory approval, Amir Dan Rubin will stay as CEO of One Medical.
One Medical is happy to affix Amazon, an organization that has a “willingness to put money into the long-term,” Rubin stated in a press release.
“There may be an immense alternative to make the well being care expertise extra accessible, inexpensive and even pleasurable for sufferers, suppliers and payers,” he stated.
One Medical, whose mother or father firm is the San Francisco-based 1Life Healthcare, Inc., is a membership-based service that provides sufferers each in-person and digital physician visits. As of March, it had about 767,000 members and 188 medical places of work in 25 markets, in line with its first-quarter earnings report, which additionally confirmed the corporate had incurred a internet lack of $90.9 million after pulling in $254.1 million in income.
Amazon’s newest acquisition furthers theinto the well being care providers. In 2020, the retail big opened an that permits prospects to order their medicine or prescription refills on-line and have it delivered to their entrance door in a few days. Final yr, it started providing its to employers nationwide.
In morning buying and selling, shares of 1Life Healthcare surged 68% to $17.13.