Amazon to acquire One Medical in $3.9B all-cash deal

Amazon has agreed to acquire primary healthcare provider One Medical in an all-cash deal worth $3.9 billion, the two companies announced on Thursday.

The deal, which is valued at around $18 a share, gives the Seattle-based retail giant a bigger foothold in the healthcare space.

In 2020, Amazon opened an online drug store that allows customers to order medication or prescription refills, and have them delivered to their front door in a couple of days.

Last year, it began offering its Amazon Care telemedicine program to employers nationwide.

One Medical, which is known as “the Netflix of primary care,” went public in 2020. The San Francisco-based startup is a subscription app that offers 24/7 on-demand telehealth services as well as same-day or next-day appointments with doctors.

The company oversees 188 medical offices in 25 cities. It boasts a subscription base of 767,000 customers.

Amazon stock was up 1.5% to $124.63. One Medical’s share price surged by nearly 70% to $17.25 a share.

News of the deal sent CVS tumbling by 1.5%.

Neil Lindsay, senior vice president of Amazon Health Services, said healthcare is “high on the list of experiences that need reinvention.”

“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,” Lindsay said.

“There is an immense opportunity to make the health care experience more accessible, affordable and even enjoyable for patients, providers, and payers,” One Medical CEO Amir Dan Rubin said in a statement.

Rubin will continue to serve in his capacity as CEO of One Medical after the deal closes.