Amazon to buy primary health care provider One Medical for roughly $3.9 billion

Amazon said Thursday it will acquire One Medical for $18 a share, in an all-cash deal valuing the primary health care provider at roughly $3.9 billion.

Neil Lindsay, senior vice president of Amazon Health Services, said in a statement that by acquiring One Medical, Amazon hopes to reinvent the “healthcare experience,” from how people book appointments, to the experience of being seen by a physician.

“We see lots of opportunity to both improve the quality of the experience and give people back valuable time in their days,” Lindsay said. “We love inventing to make what should be easy easier and we want to be one of the companies that helps dramatically improve the healthcare experience over the next several years.”

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Amir Dan Rubin, One Medical’s CEO, 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.”

Shares of 1Life Healthcare, One Medical’s parent, skyrocketed as much as 67% in premarket trading, after they were briefly halted following the announcement of the deal. Amazon’s stock rose more than 1%.

One Medical, which went public in 2020, operates a network of boutique primary care practices, and also offers a range of telemedicine services. It has grown to oversee 188 medical offices in 25 markets, and counts 767,000 members, according to its latest quarterly results. One Medical reported a net loss of $90.9 million on revenue of $254.1 million in the first quarter.

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The deal deepens Amazon’s presence in health-care. Amazon signaled a greater interest in the space when it purchased PillPack in 2018 for $750 million, using the acquisition to launch its own online pharmacy years later. The company has also ramped up its telehealth service, called Amazon Care, and it has sought to develop at-home medical diagnostics.

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