One Medical Is To Be Bought By Amazon For About $3.9 Billion.
POINTS TO NOTE
- The buyout will be an all-cash deal valued at roughly $3.9 billion, with Amazon acquiring One Medical for $18 a share.
- An independent network of primary care practices is operated by One Medical, which went public in 2020.
- In addition to its online pharmacy, Amazon has been ramping up its telehealth service and launching an online pharmacy as part of the deal.
One Medical Is To Be Bought By Amazon For About $3.9 Billion.
Earlier this week, the companies announced that Amazon had reached an agreement with One Medical for the purchase of $18 a share, an all-cash deal that values the primary health care provider at approximately $3.9 billion.
According to Neil Lindsay, who is the senior vice president of Amazon Health Services, the deal deepens Amazon’s presence in health care, which he describes as a “high priority on the list of experiences that need to be reinvented.”
In a statement issued by Uber, Lindsay said the company hopes to improve the experience of booking appointments and what it is like to have a doctor examine you.
Our passion is inventing new things that make what should be easy and easier, and we are committed to being one of the companies that help create a dramatically improved healthcare experience over the next several years, he said.
In its public listing in 2020, One Medical operates a network of boutique primary care practices as well as offers a range of telemedicine services as a complement to its primary care practices.
According to the company’s latest quarterly results, it currently oversees 188 medical offices in 25 markets, and it has 767,000 members, according to the company’s latest quarterly results. In the first quarter of this year, One Medical was able to report a loss of $90.9 million, despite a revenue of $254.1 million.
Amir Dan Rubin, One Medical CEO, said in a statement, “There is an immeasurable opportunity to transform the health care experience for patients, providers, payers, and providers in a way that is more affordable, accessible, and even enjoyable.”
It is worth noting that one of One Medical’s parent companies, 1Life Healthcare, has seen its shares skyrocket as much as 67% in premarket trading on Thursday, trading just below the purchase price. It has been reported that the shares of One Medical were trading at $10.18 at the close of Wednesday’s trading session, prior to the announcement of the deal.
The stock price of Amazon rose by roughly 1% on Thursday afternoon.
When Amazon purchased PillPack for $750 million in 2018, it showed it had a greater interest in the health care space, and later the company used the acquisition as a springboard to launch its own online pharmacy years later. As well as extending its telehealth service, Amazon Care, the company has also worked to develop at-home medical diagnostic systems, as well as enhance its telehealth service.