Tech

Amazon is buying primary care provider One Medical for about $3.9 billion

Dr. Stephanie Long, right, MD, of One Medical Group, measures the blood pressure of Danielle Green, left, who is 20 weeks pregnant, during a prenatal appointment Thursday, Feb. 4, 2016, in San Francisco. California.

Leo Suzuki | Chronicles of San Francisco | Getty Images

Amazon is acquiring One Medical for $18 a share, an all-cash deal that values ​​the primary care provider at about $3.9 billion, the companies said Thursday.

The deal deepens Amazon’s presence in healthcare, which Neil Lindsay, senior vice president of Amazon Health Services, said is “high on the list of experiences that need to be reimagined.”

Lindsay said the e-commerce giant hopes to improve the way people book appointments as well as improve the experience of seeing a doctor.

“We love to invent to make what should be easier, easier, and we want to be one of the companies that will help significantly improve the healthcare experience over the next few years,” he said.

One Medical, which went public in 2020, operates a chain of boutique primary care practices and also offers a range of telemedicine services.

It controls 188 medical offices in 25 markets and has 767,000 members, according to its most recent quarterly results. One Medical reported a net loss of $90.9 million on revenue of $254.1 million in the first quarter.

“There is a tremendous opportunity to make healthcare more affordable, accessible and even enjoyable for patients, providers and payers,” One Medical CEO Amir Dan Rubin said in a statement.

After the deal closes, Rubin will continue to manage One Medical.

Shares of 1Life Healthcare, the parent company of One Medical, jumped more than 68% on Thursday, trading just below the purchase price. As of Wednesday’s close, before the deal was announced, 1Life shares were trading at $10.18.

Amazon shares rose about 1% on Thursday.

Amazon showed a strong interest in healthcare when it acquired PillPack for $750 million in 2018, using the acquisition to launch its own online pharmacy years later. The company has also ramped up its telemedicine service, called Amazon Care, and is looking to develop home health diagnostics.

WATCH: How Amazon Can Change the Pharmacy Business

Amazon is buying primary care provider One Medical for about $3.9 billion

Source link Amazon is buying primary care provider One Medical for about $3.9 billion

Back to top button