Amazon mentioned on Thursday that it had reached a deal to accumulate One Medical, a community of major care clinics, in a deal price $3.9 billion, an enormous step within the e-commerce big’s plans to change into a participant within the well being care business.
One Medical, which relies in San Francisco, operates a community of major care suppliers that provide in-office and digital medical providers, and is without doubt one of the main opponents to the same however smaller service Amazon had began to supply.
Amazon will purchase One Medical for $18 per share in an all-cash transaction, it mentioned 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 vice chairman of Amazon Well being Companies, mentioned within the assertion.
The deal is the primary main acquisition beneath Andy Jassy, who took over as Amazon’s chief government final yr when founder Jeff Bezos stepped down. Mr. Jassy has advised 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 yr, its inventory value closed on Wednesday at $10.18.
“We look ahead to innovating and increasing entry to high quality healthcare providers, collectively,” mentioned One Medical’s chief government, Amir Dan Rubin, who will stay in his put up after the deal closes.
In 2019, Amazon started working its personal major and pressing care service, known as Amazon Care, to deal with its staff, first in Washington State after which nationally. It’s primarily based on digital periods 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 yr, it promoted Silicon Labs, TrueBlue and Complete Meals Market, which Amazon owns, as shoppers.
One Medical is way bigger, with greater than 8,500 employers signed up as clients. One Medical additionally gives 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, an internet pharmacy, in an effort to seize a chunk of the $560 billion prescription drug business.