Amazon to Acquire One Medical for $3.9 Billion

Amazon (NASDAQ: AMZN) announced plans to acquire primary health care provider One Medical for approximately USD3.9 Billion. The deal furthers Amazon’s presence within the healthcare industry, which according to senior vice president of Amazon Health Services Neil Lindsay, is “high on the list of experiences that need reinvention.”

“Booking an appointment, waiting weeks or even months to be seen, taking time off work,.. then making another trip to a pharmacy – we see lots of opportunity to both improve the quality of the experience and give people back valuable time in their days,” said Neil Lindsay, SVP of Amazon Health Services. “We love inventing to make what should be easy 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-centered 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.”

One Medical went public in 2020 and now runs a network of boutique primary care practices, while offering a variety of telemedicine services. According to its latest quarterly results, it now oversees 188 medical offices in 25 markets, and has 767,000 members. Nevertheless, the healthcare company reported a net loss of USD90.9 Million on revenue of USD254.1 Million within the first quarter.

“The opportunity to transform health care and improve outcomes by combining One Medical’s human-centered 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,” said Amir Dan Rubin, One Medical CEO.

Shares of 1 Life Healthcare, One Medical’s parent, rose approximately 67%, while Amazon’s stock was up about 1% on Thursday.