Amazon has signed a definitive agreement to acquire One Medical, a membership-based primary care service provider, an all-cash transaction valued at $3.9bn.
Under the terms of the merger deal, Amazon will acquire all the shares of One Medical for $18 per share, along with the latter’s net debt.
Amazon to acquire One Medical. (Credit: Bryan Angelo on Unsplash)
One Medical is a technology-powered primary care company of San Francisco-based 1Life Healthcare, which operates a chain of primary healthcare clinics.
The company offers in-person care, digital health and virtual care services, allowing patients to schedule appointments, renew prescriptions, and access health records.
With the acquisition of One Medical, the US-based e-commerce giant aims to expand its capabilities in the virtual healthcare services area.
Amazon Health Services SVP Neil Lindsay said: “We love inventing to make what should be easy and easier and we want to be one of the companies that helps dramatically improve the healthcare experience over the next several years.
“Together with One Medical’s human-centred and technology-powered approach to health care, we believe we can and will help more people get better care, when and how they need it. We look forward to delivering on that long-term mission.”
Established in 2007, One Medical had around 767,000 members and 188 medical offices in 25 markets, according to its first-quarter earnings report.
The company works together with more than 8,000 companies to provide healthcare solutions to their employees.
One Medical reported a net loss of $90.9m, generating $254.1m in revenue for the first quarter ended 31 March 2022.
The transaction is subject to customary closing conditions, including approval by One Medical’s shareholders and regulatory approval
Upon closing, Amir Dan Rubin will continue as CEO of One Medical.
One Medical CEO Amir Dan Rubin said: “The opportunity to transform health care and improve outcomes by combining One Medical’s human-centred and technology-powered model and exceptional team with Amazon’s customer obsession, history of invention, and willingness to invest in the long-term is so exciting.
“There is an immense opportunity to make the health care experience more accessible, affordable, and even enjoyable for patients, providers, and payers. We look forward to innovating and expanding access to quality healthcare services, together.”