Amazon stated on Thursday that it had reached a deal to amass One Medical, a community of major care clinics, in a deal price $3.9 billion, an enormous step within the e-commerce large’s plans to change into a participant within the well being care trade.
One Medical, which relies in San Francisco, operates a community of major care suppliers that provide in-office and digital medical companies, and is among the main opponents to an identical however smaller service Amazon had began to supply.
Amazon will purchase One Medical for $18 per share in an all-cash transaction, it stated in a press release. The deal would require approval from One Medical’s shareholders and regulators.
“We predict well being care is excessive on the listing of experiences that want reinvention,” Neil Lindsay, the senior vp of Amazon Well being Providers, stated within the assertion.
The deal is the primary main acquisition below Andy Jassy, who took over as Amazon’s chief govt final 12 months when founder Jeff Bezos stepped down. Mr. Jassy has instructed buyers he would rein in prices, although the acquisition reveals he won’t draw back from strategic investments on the proper value.
One Medical, a former Silicon Valley “unicorn,” a time period for a start-up valued by buyers at $1 billion or extra, went public in 2020 at $22.07 a share. After hitting a peak of $58.70 final 12 months, its inventory value closed on Wednesday at $10.18.
“We stay up for innovating and increasing entry to high quality healthcare companies, collectively,” stated One Medical’s chief govt, Amir Dan Rubin, who will stay in his submit after the deal closes.
In 2019, Amazon started working its personal major and pressing care service, referred to as Amazon Care, to deal with its workers, first in Washington State after which nationally. It’s primarily based on digital classes with suppliers and residential visits, although it has been increasing its bodily clinics.
Amazon Care has tried to get different employers to supply the service, although it has not had a lot success. In saying a nationwide enlargement this 12 months, it promoted Silicon Labs, TrueBlue and Entire Meals Market, which Amazon owns, as shoppers.
One Medical is much bigger, with greater than 8,500 employers signed up as clients. One Medical additionally provides memberships on to shoppers.
Amazon’s ambitions to be a well being care participant accelerated in 2018, when it spent $753 million to purchase the start-up PillPack, a web-based pharmacy, in an effort to seize a chunk of the $560 billion prescription drug trade.
